Shares of ServiceTitan surged 42% in their Nasdaq debut on Thursday, valuing the cloud-based software firm at nearly $9 billion. The Glendale, California-based company, which offers software solutions for HVAC and other technician-led businesses, saw its shares open at $101, significantly above the IPO price of $71.
Despite the strong debut, the valuation marks a slight dip from its $9.5 billion valuation after a 2021 funding round led by Thoma Bravo. ServiceTitan raised approximately $625 million by selling 8.8 million shares, exceeding its earlier pricing expectations due to strong investor demand. The IPO comes amid a revitalized U.S. equity market, supported by lower interest rate expectations and optimism for economic stability.
ServiceTitan CEO and Co-founder Ara Mahdessian expressed confidence in the timing of the public offering, citing both robust business performance and favorable market conditions. “This is the right time for ServiceTitan to be a public company,” Mahdessian stated.
The company joins a growing list of venture-backed firms going public this year, including Reddit and Rubrik, which have seen significant post-IPO gains. Upcoming IPOs for Klarna and Genesys signal continued momentum in the tech sector. Joe Endoso, president of Linqto Capital, anticipates 2025 to be a landmark year for IPOs, fueled by increasing investor confidence and capital availability.
Founded by Mahdessian and Vahe Kuzoyan, ServiceTitan has established itself as a leader in its niche market, serving over 11,800 technician-led businesses in the HVAC industry. The IPO was underwritten by a consortium of 14 firms, including Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup.
