ServiceTitan, a Glendale tech firm that makes business management software for plumbers, painters and other contractors, announced Tuesday that it wants to raise up to $502 million in its initial public offering on the Nasdaq stock exchange.
The company said it plans to offer 8.8 million shares that would be priced between $52 and $57 each, according to a regulatory filing. At the top of that range, ServiceTitan would have a market capitalization of $5.16 billion. The company was valued at $7.6 billion after a November 2022 funding round. ServiceTitan hasn’t said when it plans to start trading.
ServiceTitan was founded in 2007 by two college friends from Glendale, Ara Mahdessian, 39, and Vahe Kuzoyan, 41, whose fathers worked as contractors. The company previously raised about $1.4 billion from venture firms, including Iconiq Growth, Bessemer Venture Partners and Battery Ventures.
It counts about 8,000 contracting firms as customers, providing an end-to-end software suite that can manage booking appointments, generating estimates and processing invoices as well as payroll and dispatching workers. Clients range in size from family-owned contractors to large national franchises totaling more than 100,000 technicians. It charges a subscription fee for its services.
The company, which assists contractors nationwide, says it wants to expand the number of trades and markets it serves. It employed 2,870 workers as of July 31 at its Glendale headquarters and offices elsewhere in the U.S. and internationally.
Competitors include BuildOps, Housecall Pro, Jobber and other companies that charge subscriptions for their web-based business management software.
ServiceTitan had filed confidential paperwork for an $18-billion public offering in 2022, according to Business Insider, but didn’t move forward after the Federal Reserve sharply raised interest rates to combat inflation, freezing up the IPO market.
The company reported revenue of $614 million in the fiscal year that ended Jan. 31, up nearly a third from a year earlier, and an operating loss of $195 million, 28% less than in fiscal 2023. It had about $147 million in cash and equivalents on hand as of Jan. 31 and was carrying $175 million in long-term net debt.
The company’s share structure will ensure that control remains with the founders — Mahdessian is chief executive and Kuzoyan president — who will retain all Class B shares, which are entitled to 10 votes each.
Lead underwriters on the IPO are Goldman Sachs Group, Morgan Stanley, Wells Fargo and Citigroup. They have an option to buy an additional 1.32 million shares, which will be traded under the ticker symbol “TTAN.”
Bloomberg contributed to this report.
