Market Overview

Qualtrics Files To Go Public At Up To $14.4B Valuation

Qualtrics Files To Go Public At Up To $14.4B Valuation

Qualtrics Internatonal Inc filed for an initial public offering with the U.S. Securities and Exchange Commission on Monday. The Utah-based experience management software company is targeting a valuation between $12 billion and $14.4 billion.

What Happened: The IPO price estimate is in the range of $20 to $24 per share. Qualtrics intends to list its common stock on the Nasdaq under the symbol “XM.” The offering is expected to close sometime in January.

Qualtrics has also agreed to a private placement of $550 million with technology investment firm Silver Lake. Additionally, Q II — an entity controlled by Qualtrics co-founder Ryan Smith, will invest $120 million.

A consortium led by Morgan Stanley (NYSE: MS) and JPMorgan (NYSE: JPM) will underwrite the IPO.

Why Does It Matter: SAP SE (NYSE: SAP) currently holds a 98.6% stake in Qualtrics, and will remain a controlling shareholder after the public issue. SAP will hold approximately 80% of the outstanding shares at the conclusion of the IPO. The German software company acquired Qualtrics in 2018 for $8 billion and disclosed its intention to take the unit public in July with the aim to “fortify Qualtrics's ability to capture its full market potential within Experience Management.”

The digital survey and experience management company has two classes of shares with identical rights, except voting. While Class A shareholders are entitled to one vote per share, Class B shareholders can exercise ten votes for each share.

Price Action: SAP stock closed 3.85% higher at $130.91 on Monday.


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