ServiceTitan Announces Pricing of Initial Public Offering

Rhea-AI Summary

ServiceTitan announced the pricing of its initial public offering (IPO) of 8,800,000 shares of Class A common stock at $71.00 per share. The company granted underwriters a 30-day option to purchase up to an additional 1,320,000 shares. Trading is expected to begin on December 12, 2024, on the Nasdaq Global Select Market under the ticker symbol TTAN.

The offering, set to close on December 13, 2024, is led by Goldman Sachs and Morgan Stanley as lead book-running managers, with Wells Fargo Securities and Citigroup serving as additional book-running managers. Several other firms are participating as passive bookrunners and co-managers.

Positive

• IPO expected to raise approximately $624.8 million (excluding underwriter options)
• Strong underwriting team including top-tier investment banks
• Listing on major exchange (Nasdaq Global Select Market)

Negative

• Potential dilution for existing shareholders
• Lock-up period restrictions likely to affect stock price volatility

Insights

Financial Analyst

ServiceTitan's IPO marks a significant milestone in the SaaS sector, pricing 8.8 million shares at $71.00 per share, potentially raising $624.8 million. The pricing suggests strong institutional investor confidence in their business model serving trade industries. With an additional 1.32 million shares available through the underwriters' option, the total raise could reach $718.5 million. The involvement of major underwriters like Goldman Sachs and Morgan Stanley adds credibility to the offering. The company's platform focus on trades businesses represents a large, underserved market with significant growth potential. This IPO provides investors a unique opportunity to gain exposure to the digital transformation of the trades industry.

Tech Industry Analyst

The IPO represents a pivotal moment for the trades software industry, validating the market potential for vertical SaaS solutions. ServiceTitan's platform addresses critical operational needs for contractors and trade businesses, a sector traditionally underserved by technology. Their successful pricing demonstrates market recognition of the essential nature of their software in modernizing trade operations. The listing on Nasdaq under "TTAN" positions them alongside other major tech players. The strong underwriter lineup suggests confidence in their technology moat and market leadership. This offering could catalyze further investment and innovation in vertical-specific software solutions.

LOS ANGELES--(BUSINESS WIRE)-- ServiceTitan, Inc. (“ServiceTitan”), the software platform that powers the trades, today announced the pricing of its initial public offering of 8,800,000 shares of its Class A common stock, at a public offering price of $71.00 per share. In addition, ServiceTitan has granted the underwriters a 30-day option to purchase up to an additional 1,320,000 shares of its Class A common stock at the initial public offering price, less underwriting discounts and commissions. The shares are expected to begin trading on the Nasdaq Global Select Market on December 12, 2024, under the ticker symbol “TTAN.” The offering is expected to close on December 13, 2024, subject to customary closing conditions.

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

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. This offering is being made only by means of a prospectus, copies of which may be obtained, when available, 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/20241211046031/en/

Press Contact

Max Wertheimer

ServiceTitan, Inc.

press@servicetitan.com



Investor Contact

Jason Rechel

ServiceTitan, Inc.

investors@servicetitan.com

Source: ServiceTitan, Inc.

FAQ

What is ServiceTitan's IPO price per share for TTAN stock?

ServiceTitan's IPO is priced at $71.00 per share for its Class A common stock.

When will ServiceTitan (TTAN) begin trading on Nasdaq?

ServiceTitan (TTAN) is expected to begin trading on the Nasdaq Global Select Market on December 12, 2024.

How many shares is ServiceTitan offering in its IPO?

ServiceTitan is offering 8,800,000 shares of Class A common stock, with an additional option for underwriters to purchase up to 1,320,000 shares.

What is the total value of ServiceTitan's IPO offering?

The initial offering value is approximately $624.8 million, based on 8,800,000 shares at $71.00 per share, excluding the underwriters' option for additional shares.

Who are the lead underwriters for ServiceTitan's IPO?

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