ServiceTitan Announces Closing of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

ServiceTitan (NASDAQ: TTAN) has announced the successful completion of its underwriters' option to purchase additional shares following its IPO. The underwriters exercised their full 30-day option to purchase 1,320,000 additional shares of Class A common stock at the IPO price of $71.00 per share, generating gross proceeds of $93,720,000 before deducting underwriting costs.

The offering was led by Goldman Sachs and Morgan Stanley as lead book-running managers, with several other financial institutions participating in various roles. The SEC declared the registration statement effective on December 11, 2024.

Positive

• Generated additional $93.7M in gross proceeds from share sale
• Full exercise of underwriters' option indicates strong market demand
• Broad participation from multiple top-tier investment banks

Negative

• Potential dilution of existing shareholders due to additional share issuance

Insights

Financial Analyst

The full exercise of the over-allotment option by underwriters signals strong institutional demand for ServiceTitan's shares post-IPO. The additional sale of $93.72 million worth of shares at the IPO price of $71.00 strengthens the company's cash position and provides greater float in the market. The involvement of major investment banks like Goldman Sachs and Morgan Stanley as lead book-runners adds credibility to the offering.

The successful completion of the greenshoe option is particularly noteworthy in the current market environment, where IPO activity has been relatively subdued. This additional capital raise enhances ServiceTitan's financial flexibility for potential growth initiatives and operational expansion in the trades software market.

Market Research Analyst

The full exercise of the over-allotment option typically indicates strong market confidence in the company's prospects. With an additional 1,320,000 shares entering the market, the increased public float should improve trading liquidity for investors. The broad syndicate of underwriters, including both major bulge bracket firms and regional players, suggests wide institutional distribution and potentially diverse shareholder base.

The successful placement at the $71.00 IPO price demonstrates robust demand for exposure to the trades software sector. ServiceTitan's ability to complete this additional share sale in the current selective IPO market environment reflects positively on investor perception of its business model and growth trajectory.

LOS ANGELES--(BUSINESS WIRE)-- ServiceTitan, Inc. (NASDAQ: TTAN), the software platform that powers the trades, previously announced, in connection with its initial public offering, that it had granted the underwriters a 30-day option to purchase additional shares of its Class A common stock at the initial public offering price of $71.00 per share, less underwriting discounts and commissions. Today, ServiceTitan consummated the sale of an additional 1,320,000 shares of its Class A common stock pursuant to the full exercise by the underwriters of their option to purchase additional shares, resulting in total gross proceeds of $93,720,000, before deducting underwriting discounts and commissions.

Goldman Sachs & Co. LLC and Morgan Stanley acted as lead book-running managers for the offering. Wells Fargo Securities and Citigroup acted as additional book-running managers. KeyBanc Capital Markets, Truist Securities, Canaccord Genuity, Needham & Company, Piper Sandler, Stifel and William Blair acted as passive bookrunners. First Citizens Capital Securities, Academy Securities and Loop Capital Markets acted as co-managers.

A registration statement relating to this offering was declared effective by the Securities and Exchange Commission on December 11, 2024. This offering was made only by means of a prospectus, copies of which may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; and Morgan Stanley & Co. LLC, Prospectus Department, 180 Varick Street, New York, New York 10014, or email: prospectus@morganstanley.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 ServiceTitan

ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.

© 2024 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217504208/en/

Press Contact

Max Wertheimer

ServiceTitan, Inc.

press@servicetitan.com



Investor Contact

Jason Rechel

ServiceTitan, Inc.

investors@servicetitan.com

Source: ServiceTitan, Inc.

FAQ

How many additional shares did ServiceTitan (TTAN) sell in their underwriters' option exercise?

ServiceTitan sold 1,320,000 additional shares of Class A common stock through the full exercise of the underwriters' option.

What was the price per share for TTAN's additional share offering?

The additional shares were sold at the initial public offering price of $71.00 per share.

How much money did TTAN raise from the underwriters' option exercise?

The exercise of the underwriters' option generated gross proceeds of $93,720,000 before deducting underwriting discounts and commissions.

Which investment banks were the lead managers for TTAN's offering?

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

When was TTAN's registration statement declared effective by the SEC?

The SEC declared the registration statement effective on December 11, 2024.