[ad_1]
Christian Klein, co-CEO of German software and cloud computing giant SAP, speaks during a press conference to present SAP’s financial results for 2019 on January 28, 2020 in Walldorf, southwestern Switzerland ‘Germany. – German software giant SAP reported a bottom line plagued by high restructuring costs, but raised forecasts for the coming year.
Daniel Roland | AFP | Getty Images
LONDON – SAP chief executive Christian Klein has said investor demand for shares in enterprise software company Qualtrics is outstripping supply ahead of the company’s public debut.
SAP acquired Qualtrics in November 2018 for $ 8 billion and in July 2020 announced its intention to take the company public.
“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 Wednesday.
Qualtrics aims to raise up to $ 1.46 billion through the IPO, which could take place shortly. In an amended filing with the U.S. Securities and Exchange Commission on Monday, it announced plans to sell 50.4 million shares for between $ 27 and $ 29 each. The company previously filed for a sale of $ 49.2 million between $ 22 and $ 26 each. The listing could allow Qualtrics to reach a market cap of up to $ 14.6 billion. SAP plans to use Qualtrics’ IPO to help pay off $ 1.76 billion in debt, according to the filing.
“This acquisition is a huge success,” said Klein, who was appointed sole chief executive last April, adding that SAP had doubled Qualtrics’ revenue.
He added, “They have done very well within the SAP customer base, and now we’re opening them up. They can also enter the market outside of our customer base.”
Klein said that SAP will remain the majority shareholder of Qualtrics after its IPO and that the company “will fully benefit from the success of Qualtrics after the IPO”.
[ad_2]
Source link