Qualtrics IPO Is ‘Massively Oversubscribed, SAP CEO Says

Updated on Jan 27, 2021 at 1:17 pm UTC by · 3 mins read

With the plans to raise $1.5 billion through its ongoing IPO, Qualtrics has made a series of adjustments to its shares offering to the public in recent days.

The Chief Executive Officer of German multinational software, SAP SE (NYSE: SAP) Christian Klein has disclosed that the proposed IPO of its subsidiary, Qualtrics, an American experience management company, is ‘massively oversubscribed’ by investors. Per a CNBC report, Klein noted that the demand for the shares of the software company has outstripped the available supply as the firm prepares for its New York Stock Exchange (NYSE) debut tomorrow.

SAP SE took over the ownership of Qualtrics back in November 2018 and has helped the platform to scale up its user base, inspiring its plans to finally spawn the firm onto the public market. The highly anticipated Qualtrics Initial Public Offering is billed to earn the firm a valuation in terms of market capitalization up to $14.6 billion.

“We are looking forward to the IPO, which is, by the way, massively oversubscribed,” Klein said in an interview with CNBC’s Squawk Box Europe on Wednesday. The increased demand can be attributed to the boosted appetite for tech stocks in US markets as reflected in earlier IPOs from 2020 including Snowflake Inc (NYSE: SNOW) which has outperformed the broader market.

Qualtrics IPO Demands Spurred Adjusted Share Offerings

With the plans to raise $1.5 billion through its ongoing IPO, Qualtrics has made a series of adjustments to its shares offering to the public in recent days. Initially, the firm projected to sell its shares in the $20 to $24 range but raised this to $22 to $26 each atop 49.2 million shares slated to be sold.

In an amended filing with the United States Securities and Exchange Commission (SEC), the firm further raised this share offering to 50.4 million shares with a price tag of $27 to $29 apiece. Based on the new range, the market cap of $14.6 billion can be attained if the shares traded at the upper end of the latter range when it gets listed.

SAP noted that it will still hold the controlling shareholding power in Qualtrics but noted plans to utilize the proceeds of the funding from the Initial Public Offering to pay its outstanding debts to the tune of $1.76 billion owned to SAP America according to the SEC filing. Per the filing, the rest of the funds will be allocated as working capital as well as other general corporate purposes.

Silver Lake and its partners have agreed to invest about $550 million in Qualtrics’s shares in a private placement. Morgan Stanley (NYSE: MS), and JPMorgan Chase & Co (NYSE: JPM) are the key Underwriters of the IPO plans. By Thursday, Qualtrics is scheduled to begin trading on the NYSE under the ticker symbol ‘XM’.

Share:

Related Articles

Morgan Stanley Signals Major Crypto Push Under Trump Administration

By January 23rd, 2025

Morgan Stanley signals deeper crypto market involvement, working with US regulators to expand digital asset services while adapting to evolving regulatory landscape.

Morgan Stanley’s E-Trade Eyes Crypto Trading Services Under Trump Administration

By January 2nd, 2025

Morgan Stanley’s E-Trade explores cryptocurrency trading services expansion amid growing institutional interest and favorable regulatory outlook under incoming administration.

Morgan Stanley Sells Entire GBTC Position, Buys $187 Million of BlackRock’s IBIT

By August 15th, 2024

Banking giant Morgan Stanley announced a near-selloff of its Grayscale holdings while liquidating a total of $269.9 million worth of GBTC shares which it held in Q1 2024.

Exit mobile version