SailPoint’s IPO on Thursday fell short of expectations, offering little hope for a resurgence in tech IPOs. The stock debuted at $23 but closed its first day trading below that price. Although it gained some ground on Friday, closing above $24, it still didn’t match the high-flying performances seen with other recent tech offerings like ServiceTitan, which saw its shares soar from $71 to $105 on the first day.
IPO expert Nick Einhorn from Renaissance Capital noted that while SailPoint has good growth, it may not have distinguished itself enough in the competitive cybersecurity market to attract a premium valuation. SailPoint, previously a public company taken private by Thoma Bravo, is now navigating the IPO landscape as a leveraged buyout rather than a classic startup.
Despite bringing in over $1.3 billion and a market cap of around $13 billion, the overall sentiment remains cautious. CEO Mark McClain described the IPO as successful, with the stock closing at $25 on Day 2. However, the murky signals for future IPOs leave many hopeful employees of late-stage startups still waiting for clearer signs of a market revival. ✨
