ServiceTitan Shares Jump 42% in Blockbuster Market Debut

(Bloomberg) — Shares of ServiceTitan Inc. opened 42% above their initial public offering price after the home and commercial repair software company raised $624.8 million.

Most read by Bloomberg

Shares of the Glendale, California-based company opened at $101 apiece, above its offering price of $71 a share. That’s the biggest opening jump for a U.S. initial public offering that raised more than $400 million since Astera Labs Inc.’s debut in March, when the stock jumped 46% above its IPO price, data compiled by Bloomberg show .

The company had been marketing shares at $65 to $67 each after increasing the range, according to its filings with the U.S. Securities and Exchange Commission.

The opening gives ServiceTitan a market value of nearly $9 billion. Including stock options and restricted share units, the company’s fully diluted valuation is approximately $10 billion.

This compares to a valuation of around $7.6 billion after the financing round in 2022, according to data provider PitchBook. During the 2021 boom, the company was worth up to $9.5 billion.

The price range increase earlier this week reflected optimism about ServiceTitan’s growth potential given its “large addressable market and integrated software product,” according to Bloomberg Intelligence analyst Anurag Rana.

ServiceTitan sells software that consolidates tasks such as scheduling, scheduling and financing on its business management platform. The company’s mission is to improve the efficiency of construction projects and other service operations for residential customers and commercial contractors.

“Our analysis suggests annual revenue growth in the high teens over the next two years, with the possibility of an upward revision as the small and medium-sized business market recovers,” Rana wrote in a note earlier this week.

According to the documents, the co-founders, Chief Executive Officer Ara Mahdessian and President Vahe Kuzoyan, were expected to jointly control the majority of voting rights through their Class B shares following the offering. ICONIQ Growth affiliates were expected to own 20.5% of the Class A shares following the offering, while Bessemer Venture Partners affiliates owned 11.9%, TPG Inc. affiliates owned 7.2% and Battery Ventures affiliates owned 6 .4% will own submissions.

ServiceTitan reported annual revenue of approximately $614 million in fiscal 2024, up 31% year over year, in its filings. It reported a net loss of about $195 million, slightly less than the $270 million loss from fiscal 2023.

The story continues