Shares of SentinelOne Inc, a security software provider, jumped by 21.4% in their U.S. stock market debut giving the company a market capitalization of around $11 billion.
Shares of SentinelOne opened at $46 on Wednesday and closed at $42.5, above their initial public offering (IPO) price of $35, indicating investors’ interest in fast-growing software companies in a week flooded with IPOs.
The security software provider sold 35 million shares to raise around $1.23 billion in its IPO.
“We’re reaching a certain scale in our business, and we desire to be a trusted and transparent vendor as a public company,” said Tomer Weingarten, SentinelOne’s CEO in a statement.
Mountain View, California-based SentinelOne protects mobile phones and laptops from security breaches by using artificial intelligence technology to identify unusual behavior in enterprise networks. Its peers include Crowdstrike while the U.S. government, JetBlue, and Estee Lauder are its client.
The Coronavirus-induced pandemic has boosted demand for cybersecurity software with many companies across the world moving to a remote work model.
SentinelOne plans on expanding its market beyond endpoint protections and plans on building more product lines, including data analytics, as well as pursue acquisitions.
Its backers include Sequoia Capital, Tiger Global, and billionaire investor Daniel Loeb’s Third Point; in a funding round in November 2020, it was valued at $3 billion.
“They started with medium enterprises, and then expanded to big companies as well as the government. Once they got interest from the public sector, it’s the biggest stamp of approval for cybersecurity,” said Yanev Suissa, founder of SineWave Ventures, an early investor.
Morgan Stanley and Goldman Sachs were the lead underwriters for SentinelOne’s offering.