SAP CEO says Qualtrics $1.5 billion IPO is ‘massively oversubscribed’


Christian Klein, Co-CEO of German software program and cloud computing large SAP, speaks throughout a press convention to current SAP’s monetary outcomes for 2019 on January 28, 2020 in Walldorf, southwestern Germany. – German software program large SAP reported a backside line undermined by heavy restructuring prices, however lifted forecasts for the yr forward.

Daniel Roland | AFP | Getty Images

LONDON — SAP Chief Executive Christian Klein mentioned investor demand for shares in enterprise software program agency Qualtrics is outstripping provide forward of the corporate’s inventory market debut. 

SAP acquired Qualtrics in November 2018 for $8 billion and in July 2020, introduced that it meant to take the corporate public.

“We are looking forward to the IPO, which is, by the way, massively oversubscribed,” Klein mentioned in an interview with CNBC’s Squawk Box Europe on Wednesday.

Qualtrics is aiming to boost as a lot as $1.46 billion by way of the IPO, which might happen imminently. In an amended submitting with the U.S. Securities and Exchange Commission on Monday, it mentioned it plans to promote 50.4 million shares at $27 to $29 every. The agency beforehand filed to promote 49.2 million at $22 to $26 every. The itemizing might see Qualtrics obtain a market capitalization of as much as $14.6 billion. SAP plans to make use of the Qualtrics IPO to assist repay $1.76 billion of debt, in accordance with the submitting.

“The acquisition is a massive success.,” mentioned Klein, who was appointed sole CEO final April, including that SAP has doubled Qualtrics’ income.

He added: “They have done so well inside the SAP customer base, and now we are opening them up. They can also now penetrate the market outside of our customer base.”

Klein mentioned SAP will stay the bulk shareholder in Qualtrics after it goes public and that the corporate “will benefit fully from the success of Qualtrics after the IPO.”

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