OneStream Announces Pricing of Initial Public Offering

Rhea-AI Summary

OneStream has priced its initial public offering of 24,500,000 shares of Class A common stock at $20.00 per share. Trading is set to begin on the Nasdaq Global Select Market on July 24, 2024, under the symbol 'OS'. The offering includes 18,054,333 shares from OneStream and 6,445,667 from existing stockholders. Underwriters have a 30-day option to purchase up to 3,675,000 additional shares.

OneStream plans to use the proceeds to purchase newly issued common units of OneStream Software and to acquire common units and Class C common stock from existing stockholders. Morgan Stanley, J.P. Morgan, and KKR are leading the offering as book-running managers.

Positive

• Initial public offering of 24,500,000 shares priced at $20.00 per share
• Expected to begin trading on Nasdaq Global Select Market on July 24, 2024
• Underwriters granted 30-day option to purchase up to 3,675,000 additional shares
• Prominent financial institutions acting as lead book-running managers

Negative

• Potential dilution of existing shareholders' ownership
• Company not receiving proceeds from shares sold by existing stockholders

Insights

Financial Analyst

OneStream's announcement about its initial public offering (IPO) is significant for several reasons. Firstly, the pricing at $20.00 per share and the total offering size of 24,500,000 shares means OneStream aims to raise a substantial amount of capital, approximately $490 million. For investors, this IPO represents an opportunity to invest in a company that is transitioning from a private to a public entity, potentially allowing for liquidity and valuation recalibration in the public markets.

From a financial perspective, the distribution of shares is also noteworthy. Out of the 24,500,000 shares, 6,445,667 shares will be sold by existing stockholders. This tranche indicates that some early investors or insiders are looking to liquidate part of their holdings, which can be a double-edged sword; it may either indicate a lack of confidence in future growth or simply a common practice for early investors to realize gains. The fact that there's a 30-day option for underwriters to purchase an additional 3,675,000 shares also suggests confidence in the demand for OneStream's stock.

Investors should monitor the post-IPO performance closely, especially how the market responds to the initial trading and any subsequent financial reports.

Market Research Analyst

OneStream's IPO is a notable event in the market, especially given the involvement of high-profile underwriting firms like Morgan Stanley, J.P. Morgan and KKR. The presence of these reputed firms as lead book-runners typically adds credibility and might attract more institutional investors. The decision to list on the Nasdaq Global Select Market under the symbol 'OS' places OneStream among a competitive group of technology and software companies, which can influence investor perception positively.

The use of proceeds is another important aspect. OneStream plans to use the funds to purchase newly issued common units of OneStream Software LLC, suggesting that the company is focused on consolidating its structure and possibly fueling further growth. The synthetic secondary transaction to purchase common units and Class C shares from existing stockholders could lead to a more streamlined ownership structure, which might enhance operational efficiency.

Retail investors should weigh these strategic moves against broader market conditions and OneStream's growth potential within the Enterprise Performance Management (EPM) market.

Legal Expert

From a legal standpoint, OneStream's IPO follows stringent regulatory compliance, as indicated by the filing of the registration statement with the Securities and Exchange Commission (SEC) and its subsequent effectiveness. This ensures that all material information about the company and its financials is disclosed to potential investors, promoting transparency. The explicit mention that this press release does not constitute an offer to sell in jurisdictions where such offers are unlawful emphasizes the company's adherence to regulatory norms.

Additionally, the involvement of multiple book-running managers and co-managers indicates a robust syndicate, which usually translates to thorough due diligence and greater market confidence in the offering. Investors should be mindful of the customary closing conditions that could affect the finalization of the IPO on the expected date.

The legal framework surrounding IPOs is designed to protect investors and OneStream's compliance with these regulations reinforces the credibility of this offering. Investors should take comfort in the extensive legal oversight involved in this transaction.

BIRMINGHAM, Mich., July 23, 2024 /PRNewswire/ -- OneStream, Inc. today announced the pricing of its initial public offering of 24,500,000 shares of its Class A common stock, at a public offering price of $20.00 per share. The shares are expected to begin trading on the Nasdaq Global Select Market on July 24, 2024 under the symbol "OS." The offering is expected to close on July 25, 2024, subject to customary closing conditions.

The offering consists of 18,054,333 shares of Class A common stock to be sold by OneStream and 6,445,667 shares to be sold by existing stockholders. In addition, OneStream has granted the underwriters a 30-day option to purchase up to an additional 3,675,000 shares of Class A common stock from OneStream at the initial public offering price, less underwriting discounts and commissions.

OneStream intends to use a portion of the net proceeds to it from this offering to purchase newly issued common units of OneStream Software LLC, of which OneStream will be the sole manager. OneStream intends to use the remaining net proceeds to purchase common units of OneStream Software LLC and shares of Class C common stock from certain of its existing stockholders in a synthetic secondary transaction at a purchase price per unit equal to the initial public offering price per share of Class A common stock, net of underwriting discounts and commissions. OneStream will not receive any proceeds from the sale of shares by the selling stockholders.

Morgan Stanley, J.P. Morgan and KKR are acting as lead book-running managers for the offering. BofA Securities, Citigroup and Guggenheim Securities are acting as book-running managers and Raymond James, Scotiabank, Truist Securities, BTIG, Needham & Company, Piper Sandler, TD Cowen and Wolfe | Nomura Alliance are acting as additional book-running managers for the offering. Amerivet Securities, Blaylock Van, LLC, Cabrera Capital Markets LLC, Drexel Hamilton and Loop Capital Markets are acting as co-managers for the offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and was declared effective on July 23, 2024. The offering is being made only by means of a prospectus. Copies of the prospectus relating to this offering may be obtained from: Morgan Stanley & Co. LLC, Prospectus Department, 180 Varick Street, New York, New York 10014, or email: prospectus@morganstanley.com; and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or email: prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About OneStream

OneStream is how today's Finance teams can go beyond just reporting on the past and Take Finance Further by steering the business to the future. It's the leading enterprise finance platform that unifies financial and operational data, embeds AI for better decisions and productivity, and empowers the Office of the CFO to become a critical driver of business strategy and execution. With more than 1,400 customers and 250 go-to-market, implementation and development partners, our vision is to be the operating system for modern finance.

Disclaimer

"Wolfe | Nomura Alliance" is the marketing name used by Wolfe Research Securities and Nomura Securities International, Inc. in connection with certain equity capital markets activities conducted jointly by the firms. Both Nomura Securities International, Inc. and WR Securities, LLC are serving as underwriters in the offering described herein. In addition, WR Securities, LLC and certain of its affiliates may provide sales support services, investor feedback, investor education, and/or other independent equity research services in connection with this offering.

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SOURCE OneStream Software LLC

FAQ

What is the IPO price for OneStream (OS) stock?

OneStream (OS) has priced its initial public offering at $20.00 per share.

When will OneStream (OS) start trading on the Nasdaq?

OneStream (OS) is expected to begin trading on the Nasdaq Global Select Market on July 24, 2024.

How many shares is OneStream (OS) offering in its IPO?

OneStream (OS) is offering 24,500,000 shares of Class A common stock in its initial public offering.

What will OneStream (OS) use the IPO proceeds for?

OneStream (OS) intends to use the proceeds to purchase newly issued common units of OneStream Software and to acquire common units and Class C common stock from existing stockholders.