HireRight Holdings, a US-based HR-services company, is set for an IPO that’s expected to raise $100m and will see the company trade under the ticker HRT. The company serves over 40k customers across the globe and provides digital tools for onboarding new employees. These include things like background screening, health screening, and verification tools — it’s essentially a streamlined software tool for a business’ HR infrastructure.
Although the firm has had healthy user growth, with it processing over 20 million profiles in 2020, it’s not the best of times for an IPO. Despite HireRight’s $327m in revenues for H1 2021, it also reported a $15.6m loss. However, due to the company’s recent acquisitions of screening businesses like BackTrack, J-Screen, and PeopleCheck, its net loss has decreased by 66% compared to H1 2020. With PE titan General Atlantic as a majority owner in the company, the IPO also comes as a welcome investment exit.
why it matters
This makes General Atlantic having listed more firms in its portfolio than in the previous two years. With its previous holdings including the likes of Uber (UBER) and Airbnb (ABNB), there must be a sound reason behind HireRight’s IPO despite its net loss.