SentinelOne sells 32M shares to raise $928M aiming to get a $7B Valuation in IPO

filing sentinelone 32m 7b 928m

According to a Regulatory Filing, SentinelOne Inc., a Cybersecurity company funded by Third Point, a hedge fund run by billionaire investor Daniel Loeb. SentinelOne plans to raise nearly $7 billion in its American Initial Public Offering (IPO).              

SentinelOne intends to sell 32 million shares at a price between $26 and $29 each, to raise $928 million at the high end of the range. Other investors in SentinelOne’s venture capital fund include Tiger Global, Sequoia Capital, and Insight Venture Partners.

Sky-high business valuations on the stock market, which were inflated by the Federal Reserve’s low-interest rates and monetary stimulus during the COVID-19 epidemic, are what is fueling the IPO frenzy. This has sparked a surge of speculative excitement that benefits both ordinary public firms and special purpose acquisition companies (SPACs) established specifically to obtain capital through initial public offerings (IPOs).

SentinelOne, a company founded in 2013, guards computers and cell phones against security lapses by spotting anomalous activity on corporate networks using artificial intelligence technologies. During the COVID-19 pandemic, it saw a rise in sales as the majority of its staff began working from home.

The Mountain View, California-based business raised $267 million from investors in November, including Tiger Global and Sequoia, for a valuation of more than $3 billion—nearly three times what it was worth in February 2020.

SentinelOne stated in the filing that organizations connected to Tiger Global, Insight Venture Partners, Third Point Ventures, and Sequoia Capital have individually committed to purchasing several shares for an estimated $50 million total.

The announcement of SentinelOne’s IPO intentions comes as Wall Street continues its record-breaking streak of stock market floatations with no signs of abating. With more than half the year left, U.S. IPOs have raised $171 billion, surpassing the previous high set in 2020 of $168 billion, according to statistics from Dealogic.

According to Dealogic, the average one-day gain for U.S. IPOs so far are up from 21.7 percent in 2019 and 28.2 percent in the same period in 2020. In comparison to 32.2 percent in 2020 and 25.5 percent in 2019, the average one-week return for 2021 is 35.7 percent.

The New York Stock Exchange will list SentinelOne’s stock under the letter “S.” The offering’s main underwriters are Morgan Stanley and Goldman Sachs & Co.