(Reuters) -Thoma Bravo-backed cybersecurity firm SailPoint will start trading on the Nasdaq on Thursday, returning to the U.S. stock market more than two years after it went private.
The Austin, Texas-based company, along with Thoma Bravo, raised $1.38 billion in an upsized IPO, selling 60 million shares at $23 each. They had aimed to sell 50 million shares priced between $21 and $23.
Stricter data privacy regulations, a surge in global cyberattacks and the rise of AI-driven cybersecurity threats have boosted the value of businesses like SailPoint.
SailPoint first went public in 2017, three years after being acquired by private equity firm Thoma Bravo, which bought it again in 2022 via a $6.9 billion deal.
A successful debut could encourage others in the pipeline, such as chipmaker Cerebras, buy now, pay later giant Klarna and AI software firm Genesys to move forward with their listing plans in the coming months.
The recovery in the U.S. IPO market has been uneven so far. Venture Global's much-anticipated IPO fell short of expectations, while pork processor Smithfield Foods has regained its poise after a lukewarm debut.
"Having the divergence of performance indicates investors are discerning, but that solid companies can get done and do well, which is good," said Nicholas Smith, senior research analyst at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs.
Investors are awaiting more policy clarity as President Donald Trump's administration takes shape, with Goldman Sachs CEO David Solomon warning that markets could see some volatility as long as uncertainty persists.
The company allows its clients, which include General Motors (NYSE:GM) and Hershey, to design and manage their own security processes.
Morgan Stanley (NYSE:MS) and Goldman Sachs were the lead underwriters for the offering.