(Bloomberg) — Sprinklr Inc., a customer experience software maker, sunk and then climbed back in its trading debut after raising $266 million in a downsized initial public offering priced below a marketed range.
The shares, priced below the marketed range at $16 apiece in the IPO, swung between a gain of as much as 25% and a loss of up to 8.8% on Wednesday. They closed up 10% to $17.60, giving the company a market value of $4.4 billion.
Accounting for stock options and similar holdings, the company’s diluted valuation is more than $5.2 billion. That compares with $2.7 billion when the company raised financing last year, according to data provider PitchBook.
Sprinklr sold 16.6 million shares on Tuesday after marketing 19 million for $18 to $20 apiece.
The company works with clients such as Microsoft Corp., McDonald’s Corp. and Cisco Systems Inc. to help brands interact with customers online. Its software offerings include social media management, social advertising and content marketing.
Sprinklr founder and Chief Executive Officer Ragy Thomas sees opportunity in the Biden administration’s scrutiny of big tech and potential efforts to rein in the industry’s biggest players.
Platform Interface
“What we are building our platform for is the interface to any number of channels that you may have and in that sense we are an adapter to these big platforms,” Thomas said.
Sprinklr might consider acquisitions, he added.
“We will always look at M&A as a strategic driver at the appropriate time, but we are unlikely to be buying to grow bigger,” he said.
Its top investors include Hellman & Friedman, Battery Ventures and Iconiq Strategic Partners, which together will control more than half of the shareholder voting power after the IPO, according to the filing.
Hellman & Friedman added to its stake with the IPO.
“Our mindset is we’re investors first and we are comfortable holding public stock,” said Tarim Wasim, a partner at the firm. “The ones we like, we’re always willing to buy more.”
Revenue Gains
Sprinklr had $387 million in revenue for the year ended Jan. 31, up from $324 million during the same period the year before, according to its filings. The company had a net loss of $41 million for the period, up from $39 million last year.
The offering was led by Morgan Stanley, JPMorgan Chase & Co., Barclays Plc and Wells Fargo & Co. Sprinklr’s shares are trading on the New York Stock Exchange under the symbol CXM.
(Updates with closing share price in second paragraph)
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