- SentineOne surged 17% above its IPO price of $35 on Wednesday in the biggest cybersecurity IPO yet.
- The IPO included support from famous names Christorpher Krebs, Daniel Loeb, and Ashton Kutcher.
- The IPO could signal an exciting era for cybersecurity investing and a rivalry with CrowdStrike.
SentinelOne’s initial public offering Wednesday blew past expectations, opening trading at $46 per share, far past the $35 stock price set by the company, and above the top of its pricing range.
By the time the closing bell rung, the stock sank to $41.11 — 8% below that opening price, but still up about 17% from the IPO price. As of Wednesday afternoon, SentinelOne is valued at around $11 billion — up from the $3.1 billion it was valued at in November.
The big picture is that this is likely cybersecurity’s biggest and most star-studded IPO to date, perhaps ushering in a new era for investing in the sector – and setting up a heavyweight rivalry with $57 billion competitor CrowdStrike, considered the one to beat in the new age of cloud-focused cybersecurity.
“This is the biggest cybersecurity IPO ever,” SentinelOne Chief Marketing Officer Daniel Bernard told Insider on Wednesday morning. “Investors love it.”
On Tuesday night, the company announced the pricing of 35 million shares of its Class A common stock at a public offering price of $35. On Wednesday, it began trading under the ticker symbol S.
SentinelOne counts Christopher Krebs, the cybersecurity official who stood up to President Donald Trump on election security, as an advisor and hedge-fund titan Daniel Loeb as a major investor. (As of this spring, his firm Third Point Ventures owned 10% of the company.) Both were expected at a party tonight in NYC the company is throwing, sources close to the company said. Celebrity investor Ashton Kutcher has been an investor in the company since 2017.
That kind of sizzle didn’t happen in cybersecurity just a few years ago, experts say. This is the biggest cybersecurity IPO ever, the company says, and the star-power “confirms everything else happening in cybersecurity right now, Forrester analyst Allie Mellen, an expert in security and risk, told Insider on Wednesday.
“The high-profile $57 billion CrowdStrike – which SentinelOne pointed out advertised prominently in Manhattan’s Times Square even as trading began on Wall Street – may be looming.attacks, cutting-edge tech, and public attention are all coming together to create a new prominence,” Mellen said. And a rivalry with
“It remains to be seen whether they can face off with CrowdStrike,” Mellen said. “They are one of the direct competitors to CrowdStrike, and this is a huge step toward becoming an equal.”
CrowdStrike downplayed the ad – but asserted it was the leader in the market. George Kurtz, CEO of CrowdStrike, told Insider in an email that “As the leader in the space, we routinely run broad based advertising campaigns” and said his company has a “strong competitive advantage over any other vendor out there.”
For its part, SentinelOne took a subtle jab at its rival twice in its S-1 filing with the Securities Exchange Commission announcing the IPO. SentinelOne said its technology is faster and more accurate than “any single human or even a crowd” – phrasing that was not lost on some watchers of the two competiitors.
The IPO “speaks to a robust cybersecurity landscape with SentinelOne, CrowdStrike, Zscaler leading the way,” Dan Ives, managing director of equity research at Wedbush Securities, told Insider.
Loeb’s Third Point Ventures owned a 10% stake in the company at the time SentinelOne filed its IPO prospectus, with other prominent backers of the company including Sequoia Capital, Insight Venture Partners, and Tiger Global.