Key insights
- Liftoff Mobile, backed by Blackstone, is targeting a $3.7 billion valuation in its renewed US IPO attempt. This offering will test investor appetite for software companies, particularly in light of AI disruption fears. A successful IPO could signal a return of confidence and pave the way for other software listings, potentially boosting the tech sector if risk appetite prevails over valuation concerns.
By Utkarsh Shetti and Prakhar Srivastava
May 29 (Reuters) - Liftoff Mobile, backed by Blackstone, said on Friday it is targeting a valuation of up to $3.66 billion in its U.S. initial public offering, in a renewed attempt to test investor appetite in public markets after scrubbing an initial launch.
The Redwood City, California-based company is seeking to raise up to $418 million by offering 19 million shares priced between $20 and $22 each. That compares with the up to $762 million it hoped to raise in its previous offering.
The company’s renewed IPO push comes as the listings market was hit by a broad selloff in software-focused companies, which investors viewed as vulnerable to disruption from rapid advances in artificial intelligence.
"If the firm is able to successfully pursue the IPO, it should pave the way for similar firms to go to market," IPOX CEO Josef Schuster said.
"It may also mean that the current bullishness and strong risk appetite for IPOs altogether outweighs the potential negativity around the valuation matrices for software stocks, which have been impacted so much by the fear over AI."
Large software IPOs have been largely absent this year as investors reassessed valuations amid rapid advances in artificial intelligence. Liftoff’s offering is expected to test whether appetite for software listings is returning.
After Liftoff’s withdrawal, the market for new listings was hit with renewed jitters as sharp swings due to the Iran war weighed on the risk-on sentiment in equities. Hopes of a short-lived conflict, however, have pushed stock markets back up.
The company was formed when Blackstone combined its portfolio companies Liftoff and Vungle in 2021. It provides marketing and monetization tools for mobile app developers to help them acquire users and drive engagement.
Goldman Sachs, Jefferies and Morgan Stanley are the joint lead book-running managers for the offering, after which Liftoff is looking to list on the Nasdaq under the ticker "LFTO."
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