SailPoint Announces Pricing of Upsized Initial Public Offering

Rhea-AI Summary

SailPoint has announced the pricing of its upsized initial public offering of 60,000,000 shares of common stock at $23.00 per share. The offering includes 57,500,000 shares from SailPoint and 2,500,000 shares from existing stockholders. The company has granted underwriters a 30-day option to purchase up to 9,000,000 additional shares.

Trading is expected to begin on Nasdaq Global Select Market on February 13, 2025, under the symbol 'SAIL'. The offering should close on February 14, 2025. The company plans to use the proceeds to repay term loan debt, settle equity awards, pay advisory fees to Thoma Bravo, and for general corporate purposes.

Morgan Stanley and Goldman Sachs are serving as joint lead book-running managers, with several other financial institutions participating as book-runners and co-managers.

Positive

• Large-scale IPO raising approximately $1.32 billion (57.5M shares at $23)
• Strong underwriter support from major financial institutions
• Proceeds will be used to reduce debt through term loan repayment
• Listing on major exchange (Nasdaq Global Select Market)

Negative

• Significant portion of proceeds allocated to settling existing obligations rather than growth
• Large share offering may lead to initial dilution for early investors
• Existing stockholders selling 2.5M shares could signal insider exit

Insights

Investment Banking Analyst

The upsized IPO of 60 million shares at $23.00 per share represents a strong vote of confidence in SailPoint's business model and growth prospects. The substantial size of the primary offering (57.5 million shares) provides the company with significant strategic flexibility, while the relatively modest secondary component (2.5 million shares) from existing stockholders suggests continued confidence from early investors.

The use of proceeds reveals a strategic focus on strengthening the balance sheet through debt reduction, which should improve financial flexibility and reduce interest expenses. The settlement of equity awards indicates a focus on employee retention and alignment with shareholder interests, important in the competitive cybersecurity talent market.

The impressive syndicate of 15 underwriters, led by premier institutions Morgan Stanley and Goldman Sachs, reflects robust institutional interest and suggests strong book-building momentum. The inclusion of diverse co-managers also demonstrates a commitment to broader market participation.

The timing of this IPO is particularly noteworthy given the current market's appetite for cybersecurity solutions amid escalating digital threats. As enterprises increasingly prioritize identity security, SailPoint's public offering positions it to capitalize on this growing market while maintaining competitive advantages through increased financial resources and enhanced market visibility.

AUSTIN, Texas--(BUSINESS WIRE)-- SailPoint, Inc. (“SailPoint”), a leader in unified identity security for enterprises, today announced the pricing of its upsized initial public offering of 60,000,000 shares of its common stock at a public offering price of $23.00 per share. The offering consists of 57,500,000 shares of common stock to be issued and sold by SailPoint and 2,500,000 shares of common stock to be sold by certain existing stockholders. In addition, SailPoint has granted the underwriters a 30-day option to purchase up to an additional 9,000,000 shares of common stock at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on Nasdaq Global Select Market on February 13, 2025 under the ticker symbol “SAIL,” and the offering is expected to close on February 14, 2025, subject to customary closing conditions.

SailPoint intends to use its net proceeds from this offering to repay a portion of its term loan, settle outstanding equity awards and equity appreciation rights, pay outstanding fees under the advisory services agreement with Thoma Bravo, and for general corporate purposes. SailPoint will not receive any proceeds from the sale of the shares offered by the selling stockholders.

Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint lead book-running managers for the offering. J.P. Morgan and Evercore ISI are acting as book-running managers. BofA Securities, Barclays, Jefferies, RBC Capital Markets, BMO Capital Markets, BTIG, Mizuho, Piper Sandler, TD Cowen and Truist Securities are also acting as bookrunners. Netrex Capital Markets, Academy Securities, CastleOak Securities, L.P., Penserra Securities LLC and R. Seelaus & Co., LLC are acting as co-managers.

The offering is being made only by means of a prospectus. Copies of the final prospectus related to this offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014 or by emailing prospectus@morganstanley.com, or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone: 1-866-471-2526 or by email at Prospectus-ny@ny.email.gs.com.

A registration statement relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy any 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. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding SailPoint’s initial public offering. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “expects,” “plans,” “anticipates,” “could,” “would,” “intends,” “believes,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. These statements are based on management’s current expectations, assumptions, and beliefs concerning future developments, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict. Therefore, we cannot assure you that the events reflected in the forward-looking statements will occur, and actual events could differ materially from those described in the forward-looking statements. Any forward-looking statement speaks only as of the date as of which such statement is made, and except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

About SailPoint

SailPoint equips the modern enterprise to seamlessly manage and secure access to applications and data through the lens of identity – at speed and scale. As a category leader, we continuously reinvent identity security as the foundation of the secure enterprise. SailPoint delivers a unified, intelligent, extensible platform built to defend against today’s dynamic, identity-centric cyber threats while enhancing productivity and efficiency. SailPoint helps many of the world’s most complex, sophisticated enterprises create a secure technology ecosystem that fuels business transformation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212559689/en/

Media Relations for SailPoint

Samantha Person

Senior Manager, Corporate Communications

512-923-4053

Samantha.Person@SailPoint.com

Source: SailPoint

FAQ

What is the IPO price for SailPoint (SAIL) shares?

SailPoint has priced its IPO at $23.00 per share.

How many shares is SailPoint (SAIL) offering in its IPO?

SailPoint is offering 60,000,000 shares total, with 57,500,000 shares from the company and 2,500,000 from existing stockholders.

When will SailPoint (SAIL) begin trading on Nasdaq?

SailPoint shares are expected to begin trading on the Nasdaq Global Select Market on February 13, 2025.

How will SailPoint use the proceeds from its IPO?

SailPoint will use the proceeds to repay a portion of its term loan, settle equity awards, pay advisory fees to Thoma Bravo, and for general corporate purposes.

Who are the lead underwriters for SailPoint's (SAIL) IPO?

Morgan Stanley and Goldman Sachs & Co. are acting as joint lead book-running managers for the offering.