backed OneStream surges in market debut
Adds details on IPO market in paragraph 2; CEO comment in paragraph 4 & 5
By Pritam Biswas and Echo Wang
July 24 (Reuters) -Shares of financial software maker OneStream OS.O, backed by private equity firm KKR, rose nearly 30% in their Nasdaq debut on Wednesday, valuing the company at nearly $6 billion.
Investors have shown optimism for new listings in 2024 on hopes of a soft landing for the economy, after two years of a sluggish U.S. IPO market fueled by geopolitical tensions and high borrowing rates.
OneStream's shares began trading at $26 apiece. The company's shareholders sold 24.5 million shares at $20 a share, above the targeted range of between $17 and $19 per share.
Commenting on the stock debut, OneStream CEO Tom Shea said it allows "us to amplify (the) message about the true value of a platform."
"We're really going to focus on... continuing to deliver on that message. And that comes from our investments in artificial intelligence (AI) and machine learning."
OneStream's platform was first launched in 2012 and helps finance chiefs prepare and report financial statements to regulators and investors. It now boasts of AI integrated financial forecasting resources for its clients.
KKR KKR.N acquired a majority stake in the company in 2019, valuing the company then at over $1 billion.
Investors have shown interest in targeting AI-focused companies in recent months, on hopes of better exits.
"OneStream can perhaps be more accurately viewed as a fundamentally strong and rapidly expanding company that is being offered at an attractive valuation compared to other high-growth software peers," said Blake Brutocao, analyst at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs.
The company raised $200 million in 2021 in a funding round led by D1 Capital Partners and participation from Tiger Global and Investment Group of Santa Barbara.
OneStream has over 1,400 customers across the globe including Toyota Motor 7203.T, UPS UPS.N, News Corp NWSA.O, and General Dynamics GD.N.
Reporting by Pritam Biswas in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.