OneStream IPO raises US$490 million priced above range

ONESTREAM and a group of shareholders including KKR & Co raised about US$490 million in a US initial public offering, pricing its shares above a marketed range.

The software company and its shareholders sold 24.5 million shares on Tuesday (Jul 23) for US$20 apiece, according to a statement confirming an earlier report by Bloomberg News.

OneStream had marketed the shares for US$17 to US$19 each.

OneStream, which offers a cloud-based platform with more than 90 applications including accounting and budgeting, was marketing 18.1 million shares, and the shareholders were selling 6.4 million shares.

At the IPO price, OneStream has a market value of around US$4.6 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission. Funds and accounts advised by T Rowe Price Investment Management have indicated interest in purchasing as much as 15 per cent of the base offering at the IPO price, the filings show.

US IPOs are set for the busiest week since September, led by cold storage firm Lineage Inc.’s up to US$3.85 billion first-time share sale. IPOs on US exchanges have raised more than US$22 billion this year, up more than 60 per cent from the same period last year, though the figure remains below the pre-pandemic average.

OneStream had a net loss of US$29 million on revenue of US$375 million last year, compared with a loss of more than US$65 million on revenue of US$279 million in 2022, the filings show.

In addition to KKR, the company’s largest investors include an entity controlled by Robert Powers, chief technical officer and a director of OneStream, according to the filings.

The Birmingham, Michigan-based company, which makes software that’s used by chief financial officers and finance teams broadly, also counts Tidemark, Partners Fund Capital and Alkeon Capital Management as investors, according to its website. In 2021 it raised capital at a US$6 billion valuation from backers including D1 Capital Partners and Tiger Global.

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OneStream had 1,423 customers as of Mar 31, including Autoliv and Ingram Micro, and over 75 members of the Fortune 500, according to its filings.

The IPO is being led by Morgan Stanley, JPMorgan Chase and KKR’s capital markets arm. Bank of America, Citigroup and Guggenheim Securities are also on the offering. The company’s shares began trading on Wednesday on the Nasdaq Global Select Market under the symbol OS.