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Highlights:
- IBS Software Services Pvt. Ltd. is planning a US IPO in 2022.
- IBS is in talks with Goldman Sachs Group Inc. and JPMorgan Chase & Co. for the IPO.
- US IPO would take IBS to US$2 billion in valuation.
Indian SaaS solutions provider, IBS Software Services Pvt. Ltd., is planning a US initial public offering that would catapult the company to more than a US$2 billion in valuation. The Thiruvananthapuram-based company, which is backed by Blackstone Inc. (NYSE: BX), is planning to go public at a time when the market is highly volatile.
IBS is in talks with Goldman Sachs Group Inc. and JPMorgan Chase & Co. for its first-time planned sale of shares, Bloomberg reported citing people familiar with the development as saying.
It has also been reported that IBS Software surreptitiously filed for the US IPO, which may happen in 2022. The people also told Bloomberg that IBS plans to seek at least US$500 million in the offering.
IPO still at a nascent stage
People privy to the matter said, requesting anonymity, that the considerations are still evolving and are at an early stage. Things like IPO size and timeline could still change. Meanwhile, representatives from Blackstone, Goldman Sachs, and JPMorgan have refrained from giving any comment.
IBS software provides tech solutions to airlines, logistics, and enterprises dealing in hospitality. A representative of IBS said that the company is now focused on capitalizing on the recovery of the travel sector and that is a robust IPO candidate in the perfect market conditions.
IBS has a global footprint with offices in Australia, Dubai, Canada, South Korea, Japan, the UK, and the US. It was in 2015, that Blackstone announced buying a minority stake in IBS Software for US$170 million.
It is a challenging time to go public in the US as the market is extremely volatile. The looming fear of a recession has guided the market into massive selloffs in the past few weeks. Consumer behavior is also dampening, hit by four-decade high inflation that the Fed Reserve is combating with rate hikes.
Bottom line:
The slump in the US market is too bad this year for IPOs. All the companies could raise this year so far in US listings a paltry US$4.9 billion. Last year, companies braved the pandemic to make their public debut in the US at a record pace. However, 2022 is different, as inflation, volatility, and a market downturn have clobbered the listing party.