Skip to main content

Market Overview

SAP CEO Says Qualtrics Spin Off IPO Is 'Massively Oversubscribed:' CNBC

Share:
  • SAP SE (NYSE: SAP) Chief Executive Christian Klein told CNBC in an interview that its enterprise software unit spin off Qualtrics International Inc (NASDAQ: XM) is “massively oversubscribed.”
  • Qualtrics could raise $1.46 billion from the IPO at a $14.6 billion valuation. It was upsized twice from a planned range of $20 to $24 to an eventually offered range of $27 to $29, as per Barron’s.
  • SAP had acquired Qualtrics for $8 billion in November 2018 and offered to list the entity as a separate public unit in just 18 months from acquisition.
  • Klein said that SAP has doubled Qualtrics revenue since acquisition with SAP’s huge customer base and aims for Qualtrics to “penetrate the market outside of our customer base.” 
  • According to the filing, SAP intends to use Qualtrics IPO proceeds to repay $1.76 billion of debt. 
  • Post the IPO, SAP will remain the majority shareholder in Qualtrics.
  • SAP shares are down 1.20% at $133.26 in the pre-market session on the last check Wednesday.
 

Related Articles (SAP + XM)

View Comments and Join the Discussion!

Posted-In: Barron's CNBC Spin-OffsNews IPOs Tech Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com