SailPoint stock pushed higher Friday, first full day of trading for the cybersecurity company. Thoma Bravo-backed SailPoint completed an initial public offering on the Nasdaq Thursday that raised $1.38 billion but saw the stock close below its offering price.
The offering marks the first major technology IPO of 2025, coming after three slow years for new offerings from the sector.
SailPoint provides identity-focused cybersecurity software products to enterprises. The company priced its offering at 23 Thursday, the high-end of its 21-to-23 range. Shares closed down 4.4%, near 22 on Thursday.
The newly Nasdaq-listed SAIL stock rallied more than 4% to 23.07 on the stock market today.
The initial price placed SailPoint's market capitalization above $12 billion. Competitors Okta and CyberArk have market caps of $17 billion and $20 billion, respectively.
SailPoint Stock: Return To Public Markets
For SailPoint, the IPO marks a return to public markets. Thoma Bravo took SailPoint private in 2022 through a $7 billion deal. The private equity firm is retaining about 88% ownership of SailPoint stock through the new offering.
SailPoint first went public in 2017.
In its IPO prospectus, SailPoint Chief Executive Mark McClain said the company focused on its transition to software-as-a-service subscription sales during its time as a private company.
"Enterprises now recognize that taking an 'inside out' or 'identity centric' approach to enterprise security is critical," McClain wrote. "As a result of this new reality, we believe demand for identity security solutions has continued to build in the years since our first IPO."
SailPoint had annual recurring revenue of $813.2 million as of its October-ended quarter, up 30% year over year, according to its prospectus.
Investors Eye 2025 IPO Turnaround
Following a bull market in 2021, technology startups have been slow to test the public markets for the past three years. There were 215 tech and media related IPOs in 2021, according to S&P Global Market Intelligence data, followed by 51 in 2022, 25 in 2023 and 26 last year.
The IPO-focused firm Renaissance Capital projects that offerings could tick up this year with "renewed optimism" among issuers and investors.
"The backlog of private IPO candidates is larger than ever," Renaissance Capital analysts wrote in a 2025 outlook report last month. "In addition to more deals from the healthcare, industrial, and consumer sectors, venture-backed tech should make a robust return, leveraging demand for AI."
