Software startup company ServiceTitan (TTAN.US) soared 42% on its IPO debut, marking the best debut since March of this year.

Residential and commercial maintenance software company ServiceTitan (TTAN.US) went public on the NASDAQ on December 12th, Eastern Time, raising 6.248 billion US dollars. The stock closed at $71 per share, the same as the opening price, up 42% from the $65 per share IPO price. According to data compiled by Bloomberg, this is the largest first-day gain for a US IPO since Reddit (RDDT.US) went public in March with a 48% increase from the IPO price. Prior to this, after expanding the price range, ServiceTitan set the IPO price at $65 to $67 per share for marketing. Yesterday, the company announced its IPO of 8.8 million shares with a price of $71.00 per share. In addition, underwriters have a 30-day option to purchase an additional 1.32 million shares. This transaction brought the company's market value close to $9 billion. Including stock options and restricted stock units listed in documents submitted to the US Securities and Exchange Commission (SEC), the company's fully diluted valuation is close to $10 billion. According to data provider PitchBook, the company's valuation after financing in 2022 is approximately $7.6 billion. During the boom in 2021, the company was valued as high as $9.5 billion. Bloomberg Intelligence analyst Anurag Rana said earlier this week that due to ServiceTitan's "large potential market and integrated software products," the company raised its price range, reflecting optimism about its growth potential. The software sold by ServiceTitan can integrate planning, scheduling, financing and other tasks on its business management platform. The company aims to improve efficiency in accessing construction projects and other services for residential customers and commercial contractors. "Nina Achadjian, a member of the company's board of directors and partner at investment firm Index Ventures, said, "Before ServiceTitan came along, this was a forgotten industry," "The product-market fit is incredible." In a report earlier this week, Rana wrote, "Our analysis shows that the company's annual sales growth rate over the next two years will reach 16%-18%, with the possibility of an upward revision if the small and medium-sized enterprise market rebounds." Documents show that co-founders and CEOs Ara Mahdessian and Vahe Kuzoyan will jointly control a majority of voting rights after the IPO through their holding of Class B shares. After ServiceTitan goes public, an affiliate of ICONIQ Growth is expected to hold 20.5% of Class A shares, while an affiliate of Bessemer Venture Partners will hold 11.9%, TPG Inc.'s entity will hold 7.2%, and an affiliate of Battery Ventures will hold 6.4%. ServiceTitan stated in its filing that its annual revenue for the fiscal year 2024 is estimated at around $614 million, a 31% increase year-on-year. The company reported a net loss of approximately $195 million, slightly lower than the $270 million loss in the fiscal year 2023. Goldman Sachs Group, Inc., Morgan Stanley, Wells Fargo & Company, and Citigroup led the IPO, with 10 other banks participating. The company is trading on NASDAQ under the symbol TTAN.