SentinelOne, a US-headquartered cybersecurity software provider that counts semiconductor technology manufacturer Qualcomm and consumer electronics producer Samsung as investors, closed its initial public offering at over $1.4bn yesterday.
The company issued 35 million shares in an upsized offering on the New York Stock Exchange last week, priced at $35.00 each. They closed at $49.50 yesterday to give it a market capitalisation of about $12.8bn, the underwriters having bought a further 5.25 million.
Founded in 2013, SentinelOne has developed a software platform which utilises artificial intelligence to detect, prevent and respond to cyberattacks. It posted an $118m net loss for the year ending January 2021, from $93m in revenue.
Affiliates of Tiger Global Management, Insight Partners, Third Point Ventures and Sequoia Capital bought $50m of shares through a private placement concurrent to the IPO, which followed a total of nearly $700m in funding.
Tiger Global, Sequoia Capital, Third Point Ventures and Insight Partners had joined Anchorage Capital in the company’s last round, a $267m series F in November 2020 valuing it above $3bn.
Qualcomm subsidiary Qualcomm Ventures and Samsung unit Samsung Ventures were among SentinelOne’s earlier investors, as were Insight Partners, Anchorage Capital, Third Point Ventures, Tiger Global, Vista Equity Partners, NextEquity, Redpoint Ventures, Data Collective, Granite Hill, Sound Ventures, Accel, Westly Group and SineWave Ventures.
The company’s largest shareholders are Insight Partners, which held a 13.4% stake prior to the extension of the offering, Tiger Global (10.6%), Third Point (9.6%), Redpoint Ventures (6.9%), Data Collective (4.5%) and Anchorage Capital (4.3%).
Morgan Stanley and Goldman Sachs were lead book-running managers for the IPO while BofA Securities, Barclays and Wells Fargo Securities were active book-running managers.
UBS Investment Bank, Jefferies and Deutsche Bank Securities were also book-running managers for the offering, and Piper Sandler, BTIG, Cowen, Needham & Company, Loop Capital Markets, Drexel Hamilton and R Seelaus were co-managers.
