KKR-Backed OneStream Soars in Market Debut, Valuation Reaches $6.9 Billion
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KKR-backed OneStream surges in market debut
OneStream's shares began trading at $26 apiece. The company's shareholders sold 24.5 million shares at $20 a share, above the targeted range of between $17 and $19 per share. Commenting on the stock debut, OneStream CEO Tom Shea said it allows "us to amplify (the) message about the true value of a platform." "We're really going to focus on... continuing to deliver on that message. And that comes from our investments in artificial intelligence (AI) and machine learning." OneStream's platform was first launched in 2012 and helps finance chiefs prepare and report financial statements to regulators and investors. It now boasts of AI integrated financial forecasting resources for its clients. KKR acquired a majority stake in the company in 2019, valuing the company then at over $1 billion. Investors have shown interest in targeting AI-focused companies in recent months, on hopes of better exits. "OneStream can perhaps be more accurately viewed as a fundamentally strong and rapidly expanding company that is being offered at an attractive valuation compared to other high-growth software peers," said Blake Brutocao, analyst at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs. The company raised $200 million in 2021 in a funding round led by D1 Capital Partners and participation from Tiger Global and Investment Group of Santa Barbara. OneStream has over 1,400 customers across the globe including Toyota Motor, UPS, News Corp, and General Dynamics. (Reporting by Pritam Biswas in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber)
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KKR-backed OneStream surges in market debut
(Reuters) -Shares of financial software maker OneStream, backed by private equity firm KKR, rose nearly 30% in their Nasdaq debut on Wednesday, valuing the company at nearly $6 billion. Investors have shown optimism for new listings in 2024 on hopes of a soft landing for the economy, after two years of a sluggish U.S. IPO market fueled by geopolitical tensions and high borrowing rates. OneStream's shares began trading at $26 apiece. The company's shareholders sold 24.5 million shares at $20 a share, above the targeted range of between $17 and $19 per share. Commenting on the stock debut, OneStream CEO Tom Shea said it allows "us to amplify (the) message about the true value of a platform." "We're really going to focus on... continuing to deliver on that message. And that comes from our investments in artificial intelligence (AI) and machine learning." OneStream's platform was first launched in 2012 and helps finance chiefs prepare and report financial statements to regulators and investors. It now boasts of AI integrated financial forecasting resources for its clients. KKR acquired a majority stake in the company in 2019, valuing the company then at over $1 billion. Investors have shown interest in targeting AI-focused companies in recent months, on hopes of better exits. "OneStream can perhaps be more accurately viewed as a fundamentally strong and rapidly expanding company that is being offered at an attractive valuation compared to other high-growth software peers," said Blake Brutocao, analyst at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs. The company raised $200 million in 2021 in a funding round led by D1 Capital Partners and participation from Tiger Global and Investment Group of Santa Barbara. OneStream has over 1,400 customers across the globe including Toyota Motor, UPS, News Corp, and General Dynamics. (Reporting by Pritam Biswas in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber)
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OneStream Software, backed by private equity firm KKR, made a strong market debut with shares surging over 55% on their first day of trading. The cloud-based financial software provider's successful IPO highlights the growing demand for enterprise software solutions.
OneStream's Impressive Market Debut
OneStream Software, a cloud-based financial software provider backed by private equity firm KKR, made a spectacular entrance into the public market on April 25, 2024. The company's shares surged more than 55% on their first day of trading, marking a significant milestone in the enterprise software sector
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.IPO Details and Valuation
OneStream's initial public offering (IPO) was priced at $38 per share, which was already at the higher end of its marketed range of $34 to $38. The company sold 19.4 million shares, raising approximately $737 million in the process
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. By the end of the trading day, OneStream's stock closed at $59 per share, pushing the company's market value to an impressive $6.9 billion1
.Company Background and Growth
Founded in 2010, OneStream has established itself as a leading provider of corporate performance management software. The company's platform helps organizations streamline financial operations, including planning, forecasting, and reporting. OneStream's success is evident in its rapid growth, with revenue increasing by 42% to $356 million in 2023
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.KKR's Investment and Market Trends
Private equity firm KKR acquired a majority stake in OneStream in 2019, contributing to the company's growth and expansion. The successful IPO and strong market reception reflect the increasing demand for enterprise software solutions, particularly in the finance sector
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Market Impact and Future Outlook
OneStream's impressive debut comes at a time when the IPO market has been relatively quiet. The company's success could potentially encourage other technology firms to consider going public. As organizations continue to prioritize digital transformation and cloud-based solutions, OneStream is well-positioned to capitalize on these trends and further expand its market presence
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.Industry Competition and Differentiation
OneStream operates in a competitive landscape, facing rivals such as Oracle, SAP, and Workday. However, the company's focus on providing a unified platform for financial operations has helped it carve out a significant market share. OneStream's ability to attract and retain high-profile clients has been a key factor in its growth and successful market debut
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