“This is just the initial range; it’s likely to be priced and trade higher. Remember, bankers want an ‘IPO pop’ and it will not excite companies to work with them if they price the IPO too high and it trades below issue price. I suspect the company will trade in the high $60s or low $70s,” he said.
In that vein, ServiceTitan also better clarified who will be eligible to buy stock in its direct share program. ServiceTitan is setting aside 5% of its shares to sell to friends and family of the founders and, it clarified, to certain C-suite decision-makers of its customers.
While there could be some conflict-of-interest issues there — a customer who is also a shareholder selecting a vendor — such private stock sales have become more common. Reddit, which went public earlier this year, for instance, did so for its moderators.