SentinelOne targeting lower-than-expected $7 billion valuation in NYSE IPO

The Israeli-founded cybersecurity company plans to sell 32 million shares priced at between $26 and $29 per share, raising $928 million at the top end of the range

Israeli-founded cybersecurity firm SentinelOne is aiming for a valuation of over $7 billion in its U.S. initial public offering (IPO), according to a regulatory filing on Monday. The valuation is lower than expected, with Bloomberg reporting back in February that SentinelOne was preparing for an IPO at a value of around $10 billion.

 

SentinelOne, whose investors include venture capital backers Tiger Global, Sequoia Capital and Insight Venture Partners, plans to sell 32 million shares priced at between $26 and $29 per share, raising $928 million at the top end of the range. SentinelOne will list its stock on the New York Stock Exchange under the symbol "S".

 

SentinelOne CEO Tomer Weingarten. Photo: SentinelOne

 

SentinelOne's IPO plans comes as Wall Street's record-breaking run for stock market flotations shows no sign of slowing down. With more than six months until the year ends, U.S. IPOs have already totaled $171 billion, eclipsing the 2020 record of $168 billion, according to data from Dealogic.

 

SentinelOne raised $267 million at a valuation of more than $3 billion last November. The round, the company’s sixth, was led by American venture capital firms Sequoia Capital and Tiger Global. SentinelOne, which develops artificial intelligence technology for identifying abnormal behavior in enterprise networks, boasts 4,000 global clients and employs around 850 people in its offices in Tel Aviv, the U.S., Europe, and Asia.

 

Founded in 2013, SentinelOne's business experienced a boost as most employees started working from home during the Covid-19 pandemic.

 

SentinelOne reported that for the fiscal year which ended January 31, 2021, the company recorded a net loss of $117.6 million on revenue of $93.1 million, after a loss of $76.6 million on revenue of $28.1 million in the year-ago period.

 

Morgan Stanley and Goldman Sachs & Co are lead underwriters for the offering.