ServiceTitan’s stock rose 42% in its market debut, surpassing expectations for the cloud-based software company.
ServiceTitan’s shares finished trading during their first day on the Nasdaq exchange at $101 U.S., which was substantially above the initial public offering (IPO) price of $71 U.S.
The strong market debut gives the company a market capitalization of $8.97 billion U.S.
ServiceTitan is the last major IPO on Wall Street this year. It is also the largest IPO since social media platform Reddit (RDDT) and cybersecurity firm Rubrik (RBRK) went public in the spring.
The ServiceTitan IPO raised $625 million U.S. in capital for the company.
ServiceTitan makes cloud software that helps contractors such as plumbers and roofers advertise, schedule jobs, dispatch workers, invoice clients, and receiving payments.
Few technology companies have tested public markets since late 2021, when rising interest rates caused a bear market that lasted most of 2022.
However, with markets now at all-time highs, several companies have suggested that they might go public in 2025.
Potential IPO candidates in the year ahead include chipmaker Cerebras and online lender Klarna.
At its IPO price, ServiceTitan was valued at just over nine times trailing 12-month revenues.
