SailPoint’s $11.5 Billion IPO: A Second Act in the Public Market

SailPoint Technologies Holdings, a prominent player in the identity management sector, is poised to make a significant return to the public market with its upcoming initial public offering (IPO). The company, which was taken private by Thoma Bravo in 2022, plans to sell 47.5 million shares at a price range of $19 to $21 per share, potentially valuing the company at $11.5 billion. The IPO could take place as early as next week.

The Austin-based firm reported annual net losses exceeding $395 million on revenues of approximately $700 million as of January 2024. Despite these losses, SailPoint is on track for an annual recurring revenue of $813 million as of October. The company boasts a robust balance sheet with $1.5 billion in debt, and intends to use the proceeds from the IPO to address this financial burden and support ongoing operations.

Thoma Bravo, the private equity giant and majority owner of SailPoint, plans to sell 2.5 million shares in the IPO but will retain more than 87% ownership following the public offering. This move underscores Thoma Bravo's continued confidence in SailPoint's market potential. The IPO is expected to raise $1 billion in stock sales, with stock prices possibly exceeding the projected range due to the financial acumen of its owners.

Founder Mark McClain retains a relatively modest stake of over 3.6 million shares. He expressed enthusiasm for the company's renewed entry into the public market:

“Not many founding CEOs find themselves in a position to introduce their company to the public market for a second time, but I am grateful to be able to do precisely that,” – Mark McClain

SailPoint's identity management solutions have positioned it as a key competitor to Okta, serving enterprises with advanced security and access management tools. However, unlike many tech IPOs, SailPoint's market debut will not benefit venture capitalists, as it is no longer a startup. The company’s transition back to public trading reflects its strategic growth ambitions and the confidence of its stakeholders.