OneStream, a company specializing in streamlining financial processes and providing actionable insights through its platform, is set to go public.
Offering 24.5 million shares at a price range of $17 to $19 per share, the IPO aims to raise $465.5 million, valuing OneStream at approximately $4.38 billion.
OneStream intends to buy freshly issued units of OneStream Software LLC, a company solely managed by OneStream. The remaining amount will be used to buy Class C common stock from some of the existing shareholders.
What does the company do?
Established in 2010, OneStream supports CFOs in preparing and reporting financial statements to regulators and investors. Additionally, the company aids organizations in planning, budgeting, and forecasting, as stated on its website.
OneStream’s platform serves as a comprehensive solution for finance professionals and businesses, enabling them to manage operational data and processes efficiently.
Out of the total 24.5 million shares close to 18 million shares are offered by OneStream itself, and 6.5 million shares are offered by existing stockholders.
Additionally, OneStream plans to grant the underwriters a 30-day option to purchase up to 3.6 million additional shares of Class A common stock at the IPO price, which is anticipated to fall between $17.00 and $19.00 per share, excluding underwriting discounts and commissions.
In 2024, the U.S. IPO market is showing promise with increased listings, as investor confidence in new offerings grows amid expectations of a stable economic transition.
OneStream’s target valuation for its IPO is notably lower than its 2021 valuation of $6 billion, when it secured funding from investors like D1 Capital Partners and Tiger Global Management.
Morgan Stanley, J.P. Morgan and KKR are acting as lead book-running managers for the proposed offering. BofA Securities, Citigroup and Guggenheim Securities are acting as book-running managers.
Valuation history and investor considerations
Initially backed by KKR through a majority stake acquisition five years ago, OneStream saw its valuation soar to $6 billion during a 2021 funding round led by D1 Capital Partners and Tiger Global Management.
The current IPO valuation at $4.38 billion, however, reflects a downward adjustment from earlier highs, possibly signaling cautious investor sentiment.
Amidst a buoyant IPO market fueled by expectations of interest rate cuts, OneStream aims to leverage the IPO proceeds for strategic initiatives such as marketing, sales expansion, enhancing customer relationships, and product development.
The company anticipates capitalizing on improving economic conditions conducive to business growth, thereby expanding its customer base and market presence.
Finally, as OneStream prepares to trade under the ticker symbol ‘OS’, prospective investors must weigh the company’s strong market position and client base against recent valuation adjustments.
The IPO represents a pivotal moment for OneStream to accelerate growth and capitalize on emerging opportunities in the financial management sector.
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