SentinelOne Jumps in Debut at Height of $10 Billion IPO Rush

Cybersecurity firm SentinelOne Inc. rose 21% in its trading debut after upsizing its initial public offering to raise $1.2 billion, fueling the year’s biggest week for U.S. listings.

The largest of 12 IPOs that priced in the past 24 hours is the $4.4 billion listing by Chinese ride-hailing giant Didi Global Inc. Its shares, initially rose as much as 29% Wednesday from its offer price. The shares slipped and closed up a mere 1% to $14.14, giving Didi a market value of about $68 billion.

LegalZoom.com Inc., which priced its IPO above a marketed range to raise $535 million, closed its first day of trading up 35% to $37.85 in New York trading, giving it a market value of $7.35 billion, which increases to more than $8 billion on a diluted basis.

This week’s total for listings is on track for about $10 billion, according to data compiled by Bloomberg. That will make it the fifth-biggest week of the past decade and among the 12 largest ever, the data show. That excludes special purpose acquisition companies, or SPACs, that have flooded the market with offerings in the past year.

SentinelOne sold 35 million shares for $35 each on Tuesday, after marketing 32 million for $31 to $32, a range that it had elevated from $26 to $29 on Monday. The shares closed at $42.50, giving the company a market value of almost $11 billion. With stock options counted, the company’s diluted value is closer to $13 billion.

‘Critical Junction’

The company aims to be a one-stop shop for security protection, including end-point, internet-of-things and cloud computing, co-founder and Chief Executive Officer Tomer Weingarten said in an interview.

“It’s incredibly hard for a customer to buy a different solution for each type,” Weingarten said.

SentinelOne will likely make acquisitions to fill in any gaps in its technology, he said. Employees working remotely during the past year has heightened the need for security, Weingarten said, noting that personal computers or servers are main vectors for attacks.

“One would argue we’re in the most critical junction right now in cybersecurity,” he said.

Morgan Stanley, Goldman

SentinelOne’s offering was led by Morgan Stanley and Goldman Sachs Group Inc. Its shares are trading on the New York Stock Exchange under the symbol S.

Other companies making their debuts Wednesday included:

  • Clear Secure Inc. closed up 29% after selling 13.2 million shares for $31 each, above a marketed range of $27 to $30. The company raised $409 million in the listing.
  • Financial and professional services software company Intapp Inc. climbed 7.7%. It sold 10.5 million shares for $26 each after marketing them for $25 to $28 to raise $273 million.
  • Integral Ad Science Holding LLC closed up 14%. It sold 15 million shares for $18 each after marketing them for $15 to $17, raising $270 million.

Manufacturing company Xometry Inc. scored the biggest first-day pop of the group. Its shares, which soared as much as 112%, ended Wednesday up 99%. It raised $302.5 million in its IPO, pricing almost 6.9 million shares at $44 each, above the $38 to $42 marketed range.

The IPO rush is set to continue with D-MARKET Elektronik Hizmetler ve Ticaret AS pricing its share sale later Wednesday. The Turkish online retailer is seeking to raise more than $737 million.

Also set to price Wednesday is Krispy Kreme Inc.’s offering of up to $640 million. It’s expected to begin trading Thursday under the symbol DNUT.

©2021 Bloomberg L.P.

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