SailPoint, a cybersecurity firm backed by Thoma Bravo, is set to begin trading on the Nasdaq after more than two years of being private. The Austin-based company successfully raised $1.38 billion in an upsized initial public offering (IPO), selling 60 million shares at $23 each, surpassing its initial goal of 50 million shares priced between $21 and $23.

The increasing value of cybersecurity firms like SailPoint is attributed to stricter data privacy regulations, a rise in global cyberattacks, and the emergence of AI-driven cybersecurity threats. SailPoint first went public in 2017 but was acquired by Thoma Bravo in 2020 and then taken private again in 2022 for $6.9 billion.

A successful IPO for SailPoint could pave the way for other companies, such as chipmaker Cerebras, buy now, pay later giant Klarna, and AI software firm Genesys, to pursue their own listings in the near future. However, the U.S. IPO market has shown mixed results recently, with some anticipated offerings, like Venture Global’s, falling short of expectations, while others, such as Smithfield Foods, have rebounded after initial struggles.

Nicholas Smith, a senior research analyst at Renaissance Capital, noted that the varied performance of IPOs indicates that investors are selective, yet solid companies can still succeed. This trend is encouraging for the market, despite ongoing uncertainty.

Investors are also looking for clearer policies as the new administration under President Donald Trump takes shape. Goldman Sachs CEO David Solomon has cautioned that market volatility may persist amid this uncertainty.

SailPoint's clients, including major corporations like General Motors and Hershey, utilize its services to design and manage their security processes. The IPO was underwritten by Morgan Stanley and Goldman Sachs.