SentinelOne, an Israeli cybersecurity firm, has had a huge payday from its initial public offering in New York today, Wednesday, coming away with a whopping $8.9 Billion valuation. While not record setting, this is one of the biggest exits ever had by a company coming out of Startup Nation. Globes reports that SentinelOne raised $1.2 billion from its NYSE IPO.
While this is still less than the $10 billion valuation that SentinelOne was hoping for when the company first announced their IPO plans, it is still a huge victory. Just a few weeks ago the company was forced to lower expectation to achieving a valuation of only $7 billion. Then yesterday they felt good enough to predict an expected valuation up to as much as a possible $8.3 billion. So $8.9 billion is a major victory for the firm.
Yesterday SentinelOne said that it would offer shares at a price of $31-32 per share, up from the $26-29 per share price range that the company reported just last week. SentinelOne said that it expected to raise only somewhere between $992 million and $1.02 billion from the IPO, but bested that prediction with $1.2 billion raised.
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How did this happen? Well the share price offered went up to $35 per share. SentinelOne sold 35 million Class A shares at that price, after yesterday downplaying expectation for the total sale at the lower price. The company announced on Monday that it expected to sell only 32 million shares.
So why did SentinelOne understate its expectations? Maybe it did because the company wanted to be cautious. Many firms came away greatly embarrassed after failing to sell as many shares at the asking price as they boasted would happen in their IPOS. Or maybe SentinelOne honestly did not expect to be able to get the higher share price and only changed it at the last minute after receiving new information.
It will be interesting to see what, in the coming days, is revealed about whatever happened behind the scenes, if any information comes out at all.
SentinelOne is the only cybersecurity solution encompassing AI-powered prevention, detection, response and hunting across endpoints, containers, cloud workloads, and IoT devices in a single autonomous platform. It boasts that with its services organizations gain full transparency into everything happening across the network at machine speed – to defeat every attack, at every stage of the threat lifecycle.