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SAP-owned Qualtrics valued at over US$15 billion in IPO

SAP-owned Qualtrics valued at over US$15 billion in IPO

FILE PHOTO: The logo of German software group SAP is pictured at its headquarters in Walldorf, Germany, May 12, 2016. REUTERS/Ralph Orlowski

REUTERS: Qualtrics International Inc was valued at over US$15 billion in its initial public offering, against the backdrop of a capital market frenzy that has seen investors flock to technology stocks.

The survey-software seller, owned by German business software giant SAP SE, said on Thursday it raised about US$1.55 billion in its upsized initial public offering.

Qualtrics sold about 51.7 million shares priced at US$30 each, it said in a regulatory filing. The company had earlier aimed to sell 50.4 million shares at US$27-US$29 each.

SAP agreed to buy Qualtrics in November 2018 for US$8 billion, just as Qualtrics was getting ready for an IPO.

In an interview last year, SAP Chief Executive Officer Christian Klein said floating the unit had been the only way to keep on board the Qualtrics leadership team led by founder Ryan Smith, who was unsettled by the departure of SAP's American co-CEO, Jennifer Morgan.

Revenue of Provo, Utah-based Qualtrics, which gathers real-time feedback from customers to help analyze how a firm's products or services are performing, rose about 32per cent to US$550 million in the nine months ended Sept. 30.

Net loss also narrowed to US$258 million during the period from US$860.4 million a year earlier, as existing customers bought upgrades and as Qualtrics acquired new customers.

Qualtrics' shares are due to start trading on Thursday on Nasdaq under the ticker symbol "XM".

Morgan Stanley and JPMorgan are the lead underwriters for the offering.

(Reporting by Joshua Franklin in Miami and Niket Nishant in Bengaluru; Editing by Matthew Lewis and Shounak Dasgupta)

Source: Reuters

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