SAP SE Raises Pricing for 'Massively Oversubscribed' Qualtrics IPO

Qualtrics, a tech company that gauges customer and employee sentiment, is due to make its market debut on the Nasdaq Global Select Market tomorrow, under the symbol “XM.”

The company, owned by German tech titan SAP SE (NYSE; SAP), is looking to sell 50.4 million shares at a price between $27 to $29 per share, it is said in the filling. This is the second price revision as Qualtrics already increased the range to $22 to $26 per share from the prior $20 to $24.

This way, Qualtrics is looking to raise $1.46 billion with a market capitalization set at $14.60 billion if shares are sold at the top of the range. SAP purchased Qualtrics for $8 billion in 2018.

“We are looking forward to the IPO, which is, by the way, massively oversubscribed,” SAP SE CEO Christian Klein said.

“The acquisition is a massive success. 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 told CNBC.

SAP announced plans for Qualtrics to go public in July last year. The co-founder of Qualtrics Ryan Smith, who also owns NBA team Utah Jazz, bought 6 million shares at $20 a share in a private placement.

“We decided that an IPO would provide the greatest opportunity for Qualtrics to grow the experience management category, serve its customers, explore its own acquisition strategy and continue building the best talent,” Klein said last year.

“SAP will remain Qualtrics’ largest and most important go-to-market and research and development (R&D) partner while giving Qualtrics greater independence to broaden its base by partnering and building out the entire experience management ecosystem.”

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