Shares of financial software maker OneStream, backed by private equity firm KKR, rose nearly 30% in their Nasdaq debut on Wednesday, giving the company a valuation close to $6 billion. This positive market response reflects investor optimism for new listings in 2024, buoyed by hopes of a soft landing for the economy after two years of a sluggish U.S. IPO market due to geopolitical tensions and high borrowing rates.
OneStream‘s shares opened at $26 each, with the company’s shareholders selling 24.5 million shares at $20 per share, exceeding the initial target range of $17 to $19 per share. CEO Tom Shea highlighted the importance of the IPO, stating it allows the company to “amplify the message about the true value of a platform.” He emphasized OneStream’s commitment to investing in artificial intelligence (AI) and machine learning, crucial elements in their platform launched in 2012, which assists finance executives in preparing and reporting financial statements.
OneStream’s Financial Highlights
| Event | Details |
|---|---|
| Nasdaq Debut | Shares rose nearly 30% |
| Initial Share Price | $26 |
| Shares Sold | 24.5 million |
| IPO Pricing | $20 per share, above $17-$19 target range |
| 2021 Funding | $200 million led by D1 Capital Partners |
| Major Customers | Toyota Motor, UPS, News Corp, General Dynamics |
KKR acquired a majority stake in OneStream in 2019, valuing the company at over $1 billion at the time. Recently, there has been a growing interest in AI-focused companies, with investors seeking better exits. Blake Brutocao, an analyst at Renaissance Capital, described OneStream as a “fundamentally strong and rapidly expanding company” that offers an attractive valuation compared to other high-growth software peers.
The company has over 1,400 customers worldwide, including notable names such as Toyota Motor, UPS, News Corp, and General Dynamics.
Featured Image courtesy of Finance News Network
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