SAP has filed the paperwork to list its subsidiary Qualtrics, which makes experience management software, in what could be the first IPO of 2021. The company is expected to price its shares at around $20-24, giving it a valuation of up to $14.4 billion on a fully diluted basis.
SAP bought Qualtrics for $8 billion in 2018, shortly before it planned to go public. Post-IPO, the German software manufacturer is planning to maintain ownership of around three-quarters of the company as a controlling shareholder.
Qualtrics produces a range of software such as customer surveys, employee feedback, and brand tracking, part of a category known as experience management. According to its listing filing, the company has 12,000 customers and 3,300 employees and reported revenue of $723 million in the fiscal year ending September 2020, though reported a loss in part due to one-off costs of paying employees for their shares in cash at the time of the acquisition. The company will trade on the Nasdaq under the ticker XM.