Customer-survey software maker Qualtrics International filed for what could become the first U.S. initial public offering of the new year.
The SAP (SAP) - Get SAP SE Report subsidiary said in a regulatory filing that it planned to sell shares for $20 to $24 each. The number of shares wasn't specified and the filing listed a placeholder amount of $100 million.
Two years ago SAP, the Walldorf, Germany, business-software giant, purchased Qualtrics for $8 billion cash.
SAP is seeking to maintain ownership of at least three-quarters of Qualtrics after the IPO, Bloomberg reported.
SAP American depositary receipts at last check were up 0.6% to $131.70.
Qualtrics said in the filing that the Menlo Park, Calif., private-equity firm Silver Lake on Dec. 23 agreed to buy $550 million of Class A common shares in a private placement. The purchase includes $225 million of stock at the IPO price and the rest at $21.64 a share.
The company said it had applied to list its Class A common stock on the Nasdaq Global Select Market under the symbol XM.
Qualtrics reported a net loss of $258 million for the nine months through September, narrowed from a net loss of $860 million a year earlier. Revenue of $550 million rose 32% from $418 million a year earlier.
The 2019 loss was attributable partly to the one-time cost of paying employees for their shares in cash at the time of the acquisition, Bloomberg reported, citing people familiar with the matter.
Qualtrics’s co-founder and former CEO, Ryan Smith, on Dec. 8 agreed to buy 6 million shares, roughly 1% of the stock outstanding, for $20 each.
Smith, now the executive chairman of Qualtrics, this year agreed to buy a majority stake in the National Basketball Association’s Utah Jazz, and other sports and entertainment properties, from Gail Miller and the Miller family.
"We have pioneered a new category of software, experience management, or XM, which enables organizations to succeed in today’s experience economy," Qualtrics said in its filing.
"Our XM Platform helps organizations both design and improve the experiences that turn their customers into fanatics, employees into ambassadors, products into obsessions, and brands into religions."
Morgan Stanley and J.P. Morgan are the lead underwriters for the offering.