Two years after SAP SE swooped in and gobbled up Qualtrics International Inc. for $8 billion mere days before its planned initial public offering, the software company expects to go public after all.
SAP SAP, +3.85% intends to take Qualtrics public next year while remaining a majority owner, according to a filing on Monday. Qualtrics, a unit of SAP, plans to lists its stock on the Nasdaq under the ticker “XM” with an offering price between $20 and $24 per share. The “XM” refers to experience management, a category of software Qualtrics takes credit for popularizing. Morgan Stanley and JP Morgan are leading the offering.
At the listed price, Qualtrics would be valued at more than $10 billion, and likely well higher than that figure. The filing with the Securities and Exchange Commission did not list a targeted share count for the IPO, which would give a complete valuation, but the already created shares would be worth more than $10 billion at the $24 price.
The company could hit public markets in late January or early February.
According to the filing, Qualtrics racked up revenue of $401.9 million and $591.2 million for the years ended Dec. 31, 2018 and 2019, respectively, representing year-over-year growth of 47%.
For the years ended Dec. 31, 2018 and 2019, the Provo, Utah-based company’s net losses were $37.3 million and $1 billion, respectively. As of Sept. 30, Qualtrics XM Platform was used by more than 12,000 customers, including 85% of the Fortune 100, the filing said.
Qualtrics co-founder Ryan Smith, who recently acquired the NBA’s Utah Jazz for $1.66 billion, is expected to be Qualtrics’ largest individual shareholder with 6 million shares.
When SAP completed its acquisition of Qualtrics in early 2019, it was the largest private enterprise software acquisition in tech history. Today, Qualtrics is a major mover in a $60 billion annual addressable market annually.
During SAP’s two-year ownership, Qualtrics maintained the same management.
Qualtrics joins a strong 2021 IPO class that will include gaming company Roblox Inc. RBLX, and lending company Affirm Holdings Inc. AFRM, . Airbnb Inc. ABNB, -3.77% and DoorDash Inc. DASH, -6.67% both went public in December.
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