SentinelOne raises $1.2bn in 'highest valued cybersecurity IPO'

Cybersecurity vendor closed more than 20 per cent above initial price on first day of trading

Cybersecurity vendor SentinelOne outperformed expectations at its IPO on the New York Stock Exchange on Wednesday, raising $1.2bn in the highest ever valued cybersecurity IPO, according to a report from CNBC.

The company's shares closed at $42.50, 21 per cent higher than Tuesday's $35 pricing, giving the company a market capitalisation of more than $10bn, CNBC says.

It raised $1.2 billion at an implied valuation of $8.9 billion, beating Crowdstrike's 2019 IPO which raised more than $610m at an initial valuation of about $6.7 billion.

"The IPO is validation of the innovation and investment we've made to pioneer the use of behavioural AI and harness the power of data to help our customers autonomously prevent and remediate attacks, lessening the load for humans and providing capabilities not possible from other cybersecurity products on the market," SentinelOne CEO, Tomer Weingarten, said.

"Eight years ago, my co-founder Almong Cohen and I started SentinelOne to address what has become one of the greatest threats of the digital age: cyberattacks. We saw the changing nature of digital infrastructure, the accelerating rise of breaches, and the devastating impacts of cyberattacks on society - which have been amplified over time.

"The digitisation of the modern world has made securing even the most basic services our daily lives rely upon an exponential challenge."

The $35 share price rose was up from the $31 to $32 range the company had previously earmarked on Tuesday, and from prior estimates of $26 to $29.

It comes after the Israeli startup raised $267 million in Series F funding led by Tiger Global Management back in November, while EMEA channel boss Roland Stritt also claimed last year that the firm had trebled the size of its team in the UK.