Cybersecurity firm SentinelOne value hits $11bn on market debut
Stock jump of more than 20% above IPO price flags investors’ interest in fast-growing software companies
01 July 2021 - 17:48
byKrystal Hu and Sohini Podder
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SentinelOne CEO Tomer Weingarten rings a ceremonial bell during his company’s IPO at the New York Stock Exchange in New York City, the US, June 30 2021. Picture: REUTERS/BRENDAN MCDERMID
Shares of security software provider SentinelOne jumped 21.4% in their US stock market debut on Wednesday, giving the company a market capitalisation of nearly $11bn.
Its shares opened at $46 and finished the day at $42.5, above their initial public offering (IPO) price of $35, indicating investors’ interest in fast-growing software companies in a week flooded with IPOs.
SentinelOne sold 35-million shares to raise about $1.23bn in the IPO. It had earlier planned to sell 32-million shares priced between $31 and $32 per share.
“We’re reaching a certain scale in our business, and we desire to be a trusted and transparent vendor as a public company,” SentinelOne CEO Tomer Weingarten said in an interview.
Mountain View, California-based SentinelOne protects laptops and mobile phones from security breaches by using artificial intelligence technology to identify unusual behaviour in enterprise networks. It competes with CrowdStrike and its customers include JetBlue, Estee Lauder, and the US government.
The pandemic has boosted demand for cybersecurity software as organisations worldwide move to a remote work model.
The company plans to expand beyond endpoint protections and build more product lines, including data analytics, as well as pursue acquisitions.
Backed by Tiger Global, Sequoia Capital and billionaire investor Daniel Loeb’s Third Point, SentinelOne was last valued at $3bn in a funding round in November.
“They started with medium enterprises, and then expanded to big companies as well as the government. Once they got interest from the public sector, it's the biggest stamp of approval for cybersecurity,” said Yanev Suissa, founder of SineWave Ventures, an early investor.
Listed on the same day as Chinese ride-hailing giant Didi Global, SentinelOne went public in one of the busiest weeks of 2021 for US IPOs. At least 17 companies will enter the market this week.
Morgan Stanley and Goldman Sachs were the lead underwriters for SentinelOne’s offering.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Cybersecurity firm SentinelOne value hits $11bn on market debut
Stock jump of more than 20% above IPO price flags investors’ interest in fast-growing software companies
Shares of security software provider SentinelOne jumped 21.4% in their US stock market debut on Wednesday, giving the company a market capitalisation of nearly $11bn.
Its shares opened at $46 and finished the day at $42.5, above their initial public offering (IPO) price of $35, indicating investors’ interest in fast-growing software companies in a week flooded with IPOs.
SentinelOne sold 35-million shares to raise about $1.23bn in the IPO. It had earlier planned to sell 32-million shares priced between $31 and $32 per share.
“We’re reaching a certain scale in our business, and we desire to be a trusted and transparent vendor as a public company,” SentinelOne CEO Tomer Weingarten said in an interview.
Mountain View, California-based SentinelOne protects laptops and mobile phones from security breaches by using artificial intelligence technology to identify unusual behaviour in enterprise networks. It competes with CrowdStrike and its customers include JetBlue, Estee Lauder, and the US government.
The pandemic has boosted demand for cybersecurity software as organisations worldwide move to a remote work model.
The company plans to expand beyond endpoint protections and build more product lines, including data analytics, as well as pursue acquisitions.
Backed by Tiger Global, Sequoia Capital and billionaire investor Daniel Loeb’s Third Point, SentinelOne was last valued at $3bn in a funding round in November.
“They started with medium enterprises, and then expanded to big companies as well as the government. Once they got interest from the public sector, it's the biggest stamp of approval for cybersecurity,” said Yanev Suissa, founder of SineWave Ventures, an early investor.
Listed on the same day as Chinese ride-hailing giant Didi Global, SentinelOne went public in one of the busiest weeks of 2021 for US IPOs. At least 17 companies will enter the market this week.
Morgan Stanley and Goldman Sachs were the lead underwriters for SentinelOne’s offering.
Reuters
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