SentinelOne, a US-based cybersecurity technology producer backed by mobile chipmaker Qualcomm and consumer electronics manufacturer Samsung, is raising more than $1.22bn today in an upsized initial public offering.
The offering consists of 35 million shares issued on the New York Stock Exchange, increased from an initial allocation of 32 million, priced at $35.00 each, above its $31 to $32 range.
Existing SentinelOne investors Tiger Global Management, Insight Partners, Third Point Ventures and Sequoia Capital have agreed to acquire $50m more shares through a concurrent private placement. The IPO price values it at approximately $8.92bn.
Founded in Israel, SentinelOne provides extended detection and response (XDR) services through a cybersecurity software platform that works across endpoints, containers, cloud workloads and connected devices.
The company reported a net loss of about $118m for the year ending January 2021, up from $76.6m the previous year. It doubled revenue to $93m over the same period.
SentinelOne’s most recent round involved it raising $267m in series F funding from Tiger Global, Sequoia Capital, Third Point Ventures, Insight Partners and Anchorage Capital in November 2020 at a valuation of over $3bn, increasing its overall funding to almost $700m.
Qualcomm’s corporate venturing unit, Qualcomm Ventures, took part in the company’s $200m series E round in February the same year at a $1.1bn valuation. The round was led by Insight Partners and included Vista Equity Partners, Anchorage Capital, Third Point Ventures, Tiger Global and unnamed existing investors.
Insight Partners had already led a $120m series D round for SentinelOne in mid-2019 that also featured Samsung unit Samsung Ventures, NextEquity, Third Point Ventures, Redpoint Ventures, Data Collective, Tiger Global, Granite Hill and Sound Ventures.
Redpoint Ventures, Sound Ventures, Third Point Ventures, Data Collective and Granite Hill all participated in the series D round as existing investors. The company’s earlier backers included Accel, Westly Group and SineWave Ventures.
Neither corporate is among SentinelOne’s largest investors, which include Insight Partners, the owner of a 13.4% stake post IPO, Tiger Global (10.6%), Third Point (9.6%), Redpoint Ventures (6.9%), Data Collective (4.5%) and Anchorage Capital (4.3%).
The IPO’s lead book-running managers are Morgan Stanley and Goldman Sachs while BofA Securities, Barclays and Wells Fargo Securities are active book-running managers and UBS Investment Bank, Jefferies and Deutsche Bank Securities additional book-running managers.
Piper Sandler, BTIG, Cowen, Needham & Company, Loop Capital Markets, Drexel Hamilton and R. Seelaus are co-managers for the offering. The underwriters have a 30-day option to buy up to 5.25 million more shares, potentially increasing its size to over $1.4bn.
