Daniel Loeb-backed SentinelOne eyes over $7 bln valuation in U.S. IPO

Reuters2021-06-21

June 21 (Reuters) - Cybersecurity firm Sentinel One Inc, backed by billionaire investor Daniel Loeb’s hedge fund Third Point, is aiming for a valuation of over $7 billion in its U.S. initial public offering (IPO), according to a regulatory filing on Monday.

SentinelOne, whose other investors include venture capital backers Tiger Global, Sequoia Capital and Insight Venture Partners, plans to sell 32 million shares priced at between $26 and $29 per share, raising $928 million at the top end of the range. (bit.ly/3qeQqLs)

Founded in 2013, SentinelOne protects laptops and mobile phones from security breaches by using artificial intelligence technology to identify unusual behavior in enterprise networks. Its business had a boost as most employees started working from home during the COVID-19 pandemic.

The Mountain View, California-based company raised $267 million in November from investors including Tiger Global and Sequoia at a valuation of more than $3 billion, almost three times what it was valued in February 2020.

Entities affiliated with Tiger Global, Insight Venture Partners, Third Point Ventures and Sequoia Capital, have separately agreed to purchase a number of shares with an aggregate price of about $50 million, SentinelOne said in the filing.

SentinelOne’s IPO plans comes as Wall Street’s record-breaking run for stock market flotations shows no sign of slowing down. With more than six months until the year ends, U.S. IPOs have already totaled $171 billion, eclipsing the 2020 record of $168 billion, according to data from Dealogic.

SentinelOne will list its stock on the New York Stock Exchange under the symbol “S”.

Morgan Stanley and Goldman Sachs & Co are lead underwriters for the offering. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Krishna Chandra Eluri)

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