We have more detail on ServiceTitan, the US cloud business software provider, which says it is planning to offer 8.8 million shares at between $52 and $57 each when it lists on Nasdaq, potentially before the end of the year.
The software start-up, which sells its wares to contractors, is seeking a valuation of around $5.16 billion.
The price is not great for ServiceTitan which was valued at $9.5bn in 2021 when its business boomed thanks to COVID. Since then, the company’s valuation has dropped and in a subsequent fundraising round in 2021 it was valued at $7.6bn. This, however, may not be bad news for investors looking for an IPO without an overly inflated price.
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The more interesting factor is what ServiceTitan intends to do with the $446.2-$514.2m it is likely to raise. While most businesses would put the raised money into further development or expansion, ServiceTitan plans to spend over $310m to buy back all the shares of its nonconvertible preferred stock, at $1,000 a share.
The costly IPO process is ServiceTitan’s way of getting out of some fairly painful financing arrangements it agreed to in boom times and which should give it more financial independence in the long term.
The firm will be listed on the Nasdaq under the symbol “TTAN.” Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup are leading a 14-firm underwriting syndicate.
FCA could approve Shein IPO despite human rights concerns
The Financial Conduct Authority has signalled that it might allow Chinese fast-fashion company Shein to list on the London Stock Exchange despite objections from law firms and advocacy groups. A London listing has been on the cards since May when Shein’s plans to list in the US fell through, partly because of high US-China tensions and partly due to human rights concerns in parts of Shein’s production chain.
Shein, which was founded in China but two years ago moved its headquarters to Singapore, is alleged to have used forced labour when sourcing its cotton.
The FCA’s Chief Executive Nikhil Rathi told the FT this week that it was “not unusual” for UK-listed companies to carry legal risks globally. He added that a priority was ensuring risks are disclosed so investors can make informed decisions.
Shein is seeking a valuation of over £50 billion valuation and is working with Goldman Sachs, JPMorgan and Morgan Stanley on its listing plans.
Greatland Gold to list in Australia next year
London-listed Australian miner Greatland Gold LON:GGP is planning a secondary listing on the Australian Securities Exchange (ASX) some time in the second half of next year. The decision ties in with a major deal the company has just completed with US gold mining company Newmont NYSE:NEM.
Greatland Gold has bought 70% of Newmont’s stake in the Havieron gold-copper project as well as a 100% stake in the Telfer gold-copper mine plus some related interests in the Paterson region in Australia. The miner plans to renew and develop an integrated Telfer-Havieron mining and processing operation and eventually build it up into a sizable low-cost long life gold-copper mining complex.
Greatland Gold said that as a significant Australian gold-copper producer and developer it considers “a listing on the Australian Securities Exchange (ASX) to be a natural and compelling step for the group.”
Shares in Greatland Gold are up 24.9% over the last month, quickly approaching 8.64p high achieved in May.
