ServiceTitan, a company known for its cloud software catering to contractors, has priced its initial public offering (IPO) at $71 per share, surpassing earlier expectations. It’s slated to hit the Nasdaq market on Thursday, trading under the ticker symbol “TTAN”. Earlier, ServiceTitan had adjusted its price range to between $65 and $67.
The company sold 8.8 million shares during the offering, generating close to $625 million in capital. Valued at $6.3 billion at the time of the IPO, ServiceTitan marks a significant entry in a technology IPO space that has seen sparse activity since late 2021. Back then, skyrocketing inflation and rising interest rates discouraged investments in risk-heavy assets, and the rapid growth of cloud software stocks during the pandemic began to wane.
In the tech IPO scene earlier this year, Reddit joined the public domain in March, and then Rubrik, a data management firm, followed suit in April. By September, shortly after the Federal Reserve made a historic rate cut—the first since 2020—chipmaker Cerebras filed for an IPO. Still, they have yet to make their market debut.
Based in Glendale, California, ServiceTitan announced its public listing move on November 18. The company disclosed plans to use some of the raised funds to redeem all outstanding shares of its non-convertible preferred stock. They originally issued this stock last year to cover loans for acquiring the pest control software company FieldRoutes for $577 million.
In 2022, while accumulating funds, ServiceTitan agreed to “compounding ratchet” terms, a strategy aimed to expedite its public listing and minimize dilution risk, as explained by Meritech Capital, a venture firm.
Among ServiceTitan’s major stakeholders are Bessemer Venture Partners, TPG, and Iconiq, alongside its founders Vahe Kuzoyan and Ara Mahdessian. According to the Los Angeles Times, both founders grew up in the world of contracting—Mahdessian’s family in a contracting business and Kuzoyan’s in plumbing. During their pre-recorded IPO roadshow, the duo emphasized how they envisioned technology modernizing their family trades. Their software streamlines various business operations like marketing, sales, scheduling, and customer service.
For the October quarter, ServiceTitan posted preliminary results showing a net loss of about $47 million, based on $198.5 million in revenue. This represents roughly a 24% year-over-year revenue growth—the fastest since mid-2023—although the net loss increased from approximately $40 million in the same period last year.
WATCH: Mitchell Green suggests that many tech companies have successfully completed their IPOs while operating as private enterprises.
