The IPO Buzz: ServiceTitan Sets Terms for $479.6 Million IPO to Price in Mid-December

ServiceTitan (TTAN Proposed) gave Wall Street what it wanted early today: The cloud platform for “the trades” – plumbers, electricians, HVAC techs, landscapers and more – unveiled the terms for its IPO – 8.8 million shares at a price range of $52.00 to $57.00 to raise $479.6 million, if priced at the $54.50 mid-point of its range. Under those terms, Service Titan would go public at a market cap of $4.93 billion. Goldman Sachs, Morgan Stanley, Wells Fargo Securities and Citigroup are the joint book-runners. ServiceTitan’s IPO is set for pricing next week – on Wednesday night, Dec. 11, 2024 – to trade Thursday, Dec. 12, 2024, on the NASDAQ. The disclosure of ServiceTitan’s IPO terms and the launch of the deal come within about two weeks of the company’s S-1 filing on Nov. 18, 2024. And no, it wasn’t Santa Claus that prompted this. ServiceTitan had set a deadline to go public by May 2024 or risk having to dilute its shares, according to TechCrunch. The unveiling of ServiceTitan’s IPO terms gave IPO investors what they were hoping for: “We need one really good IPO before the year ends to get things going.” The company, founded in 2007, has its roots in the trades. The prospectus tells the story: “Its founders, Ara Mahdessian and Vahe Kuzoyan, are the sons of trades business owners.. They grew up watching their parents work late into the night after full days in the field—balancing the books, preparing invoices and scheduling the next day’s work—manually performing repetitive tasks that consumed their time and diverted their energy away from what they loved: serving customers and spending time with their families. “Ara and Vahe founded ServiceTitan to provide tradespeople, like their parents, with technology that is purpose-built to help trades businesses thrive. We built our cloud-based software platform to offer end-to-end capabilities to manage complex workflows, connect key stakeholders and provide impactful industry best practices. ServiceTitan remains to this day maniacally focused on the success of our customers as we fundamentally believe that our customers’ success leads to our success.” ServiceTitan, based in Glendale, California, provides a cloud-based software platform that connects and manages business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more, according to the prospectus. ServiceTitan is not profitable. The company reported a net loss of $183.0 million on revenue of $685 million for the 12 months that ended July 31, 2024, according to the prospectus. Its Retail Roadshow presentation shows that for the three months that ended July 31, 2024, ServiceTitan’s net loss shrank by 31 percent while its revenue grew 24 percent. Stay tuned.