SAP Chief Executive Officer Christian Klein said demand of investors in shares of Qualtrics business software exceeded supply before the company started trading in the stock market.
SAP acquired Qualtrics in November 2018 for $ 8 billion and in July 2020, announced their intention to bring the company to the public.
IPO Details
“We are looking forward to the IPO, which is, by the way, massively oversubscribed,” Klein said in an interview with CNBC’s Squawk Box Europe on Wednesday.
Qualtrics aims to raise about $ 1.46 billion from the IPO, which is very likely. In an amendment to the US Securities and Exchange Commission on Monday, it said it plans to sell 50.4 million shares for $ 27 to $ 29 each.
The company previously made sales of $ 49.2 million shares for $ 22 to $ 26 each. Listing could see Qualtrics benefit from a market capitalization of up to $ 14.6 billion. SAP plans to use the Qualtrics IPO to help pay off the $ 1.76 billion debt, according to the inclusion.
“The acquisition is a massive success.,” said Klein, who was appointed sole CEO last April, adding that SAP has doubled Qualtrics’ revenue.
He continued: “They have done very well within the SAP clients, now we are opening them. They can now enter the market outside of our customers. ”
Klein said SAP would remain the majority shareholder in Qualtrics after it became clear that the company would “fully benefit from the success of Qualtrics after the IPO.”
Synopsis
- SAP Chief Executive Christian Klein said investor demand for shares in enterprise software firm Qualtrics is outstripping supply ahead of the company’s stock market debut.
- SAP acquired Qualtrics in November 2018 for $8 billion and in July 2020, announced that it intended to take the company public.
- The listing could see Qualtrics achieve a market capitalization of up to $14.6 billion.
