By Corrie Driebusch

Software-company ServiceTitan rose more than 40% in its stock-market debut Thursday, a solid showing for one of the last initial public offerings of the year.

The venture capital-backed company sold 8.8 million shares at $71 apiece, raising $625 million in the offering and giving the startup a roughly $6.3 billion valuation. It was recently trading at $102.90, up 45% on the day.

The pricing came in above expectations. ServiceTitan originally planned to price its offering between $52 and $57 a share when it launched its IPO last week, but raised that range to $65 to $67 this week.

The U.S. IPO market has been mostly shut to new issues for the last three years, particularly for venture-backed companies. ServiceTitan, which makes business software, was valued at $9.5 billion in a funding round in 2021. The next year, it raised money at a $7.6 billion valuation. Its IPO values it at an even lower level.

The stock-market debut by ServiceTitan bodes well for venture-capital investors eager for companies they own to go public. Some bankers expect a somewhat better IPO market in 2025, but caution it won't get close to the levels seen in 2020 and 2021.

ServiceTitan opened trading on the Nasdaq Stock Market Thursday under the symbol "TTAN."

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(END) Dow Jones Newswires

December 12, 2024 13:05 ET (18:05 GMT)

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