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Qualtrics IPO Is ‘Massively Oversubscribed, SAP CEO Says

Summary:
With the plans to raise .5 billion through its ongoing IPO, Qualtrics has made a series of adjustments to its shares offering to the public in recent days.The Chief Executive Officer of German multinational software, SAP SE (NYSE: SAP) Christian Klein has disclosed that the proposed IPO of its subsidiary, Qualtrics, an American experience management company, is ‘massively oversubscribed’ by investors. Per a CNBC report, Klein noted that the demand for the shares of the software company has outstripped the available supply as the firm prepares for its New York Stock Exchange (NYSE) debut tomorrow.SAP SE took over the ownership of Qualtrics back in November 2018 and has helped the platform to scale up its user base, inspiring its plans to finally spawn the firm onto the public market. The

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With the plans to raise $1.5 billion through its ongoing IPO, Qualtrics has made a series of adjustments to its shares offering to the public in recent days.

The Chief Executive Officer of German multinational software, SAP SE (NYSE: SAP) Christian Klein has disclosed that the proposed IPO of its subsidiary, Qualtrics, an American experience management company, is ‘massively oversubscribed’ by investors. Per a CNBC report, Klein noted that the demand for the shares of the software company has outstripped the available supply as the firm prepares for its New York Stock Exchange (NYSE) debut tomorrow.

SAP SE took over the ownership of Qualtrics back in November 2018 and has helped the platform to scale up its user base, inspiring its plans to finally spawn the firm onto the public market. The highly anticipated Qualtrics Initial Public Offering is billed to earn the firm a valuation in terms of market capitalization up to $14.6 billion.

“We are looking forward to the IPO, which is, by the way, massively oversubscribed,” Klein said in an interview with CNBC’s Squawk Box Europe on Wednesday. The increased demand can be attributed to the boosted appetite for tech stocks in US markets as reflected in earlier IPOs from 2020 including Snowflake Inc (NYSE: SNOW) which has outperformed the broader market.

Qualtrics IPO Demands Spurred Adjusted Share Offerings

With the plans to raise $1.5 billion through its ongoing IPO, Qualtrics has made a series of adjustments to its shares offering to the public in recent days. Initially, the firm projected to sell its shares in the $20 to $24 range but raised this to $22 to $26 each atop 49.2 million shares slated to be sold.

In an amended filing with the United States Securities and Exchange Commission (SEC), the firm further raised this share offering to 50.4 million shares with a price tag of $27 to $29 apiece. Based on the new range, the market cap of $14.6 billion can be attained if the shares traded at the upper end of the latter range when it gets listed.

SAP noted that it will still hold the controlling shareholding power in Qualtrics but noted plans to utilize the proceeds of the funding from the Initial Public Offering to pay its outstanding debts to the tune of $1.76 billion owned to SAP America according to the SEC filing. Per the filing, the rest of the funds will be allocated as working capital as well as other general corporate purposes.

Silver Lake and its partners have agreed to invest about $550 million in Qualtrics’s shares in a private placement. Morgan Stanley (NYSE: MS), and JPMorgan Chase & Co (NYSE: JPM) are the key Underwriters of the IPO plans. By Thursday, Qualtrics is scheduled to begin trading on the NYSE under the ticker symbol ‘XM’.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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