SentinelOne wants to raise nearly 1 billion

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SentinelOne, the cybersecurity company, has unveiled its plans for an upcoming initial public offering, disclosing details about the business and noting that the listing could place the company’s value at $7 billion.

To reach that capitalization, the shares will have to be at the higher end for the IPO. The company has priced the shares at $26-$29 per share.

SentinelOne provides what it calls an extended detection and response or XDR platform, which spots malware in systems. The platform comes with machine learning algorithms that can identify breaches in cloud environments, connected devices, and employee endpoints.

A lucrative plan

With its browser-based console, cybersecurity teams can revert breached systems detected by SentinelOne, to an earlier state, with a single mouse click. The $7 billion-plus valuation projected could net major returns for the company’s backers.

In late 2020, Tiger Global, Third Point Ventures, Insight Partners, and Sequoia signed off on a $267 million funding round at a valuation of $3 billion for SentinelOne. That amount is less than half what the company looks to raise with this IPO. Earlier last year, a consortium composed of many of the same investors, bought a $200 million stake in the startup, at a valuation of $1.1 billion.

A windfall for SentinelOne

The IPO could also provide a lot of resources for SentinelOne since it is hoping to sell 32 million shares, which could net it a combined $928 million at the top end of the price range.

The IPO underwriters have the option to purchase 4.8 million shares, while Tiger Global, Third Point Ventures, Sequoia Capital, and Insight Venture Partners have agreed to purchase $50 million worth of shares. SentinelOne will list on the New York Stock Exchange under the ticker symbol “S”, with Morgan Stanley and Goldman Sachs as the lead underwriters for the IPO.