ServiceTitan Targets $5.95 Billion Valuation in U.S. IPO

erviceTitan, a software startup specializing in tools for the home services industry, is aiming for a valuation of up to $5.95 billion in its U.S. initial public offering (IPO). The company announced on Tuesday that it has raised the price range for its shares to $65–$67, significantly increasing the potential proceeds from its IPO amid a resurgence in the capital markets for new listings.

While the company will sell 8.8 million shares as previously planned, the updated price range could generate as much as $589.6 million, up from the $502 million it would have raised at the higher end of its earlier price band.

The Glendale, California-based firm develops software used by technicians in the heating, ventilation, and air conditioning (HVAC) industries, carving out a strong position in this niche market.

MARKET CONTEXT AND COMPETITORS

ServiceTitan’s IPO comes at a time when the U.S. IPO market is showing signs of recovery in 2024, following a prolonged period of reduced activity. The company is set to join other venture-backed firms, such as Reddit and cybersecurity software provider Rubrik, which have gone public this year.

ServiceTitan’s founders, Ara Mahdessian and Vahe Kuzoyan, have transformed the company into a market leader within its specialized sector, which serves businesses reliant on field technicians.

The company will trade on the Nasdaq under the ticker symbol “TTAN.”

LEADERSHIP AND UNDERWRITERS

Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup are spearheading a 14-firm underwriting syndicate for the IPO, underscoring strong institutional support for ServiceTitan’s public debut.

As the capital markets continue to recover, ServiceTitan’s IPO will be closely watched as a signal of investor appetite for venture-backed software firms targeting niche industries.