Christian Klein, Co-CEO of German software and cloud figure out giant SAP, speaks during a press conference to present SAP’s financial results for 2019 on January 28, 2020 in Walldorf, southwestern Germany. – German software colossus SAP reported a bottom line undermined by heavy restructuring costs, but lifted forecasts for the year ahead.
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LONDON — SAP Chief Governing Christian Klein said investor demand for shares in enterprise software firm Qualtrics is outstripping supply winning of the company’s stock market debut.
SAP acquired Qualtrics in November 2018 for $8 billion and in July 2020, augured that it intended to take the company public.
“We are looking forward to the IPO, which is, by the way, massively oversubscribed,” Klein said in an talk with CNBC’s Squawk Box Europe on Wednesday.
Qualtrics is aiming to raise as much as $1.46 billion through the IPO, which could accede to b assume place imminently. In an amended filing with the U.S. Securities and Exchange Commission on Monday, it said it plans to sell 50.4 million parts at $27 to $29 each. The firm previously filed to sell 49.2 million at $22 to $26 each. The book could see Qualtrics achieve a market capitalization of up to $14.6 billion. SAP plans to use the Qualtrics IPO to help repay $1.76 billion of in dire straits, according to the filing.
“The acquisition is a massive success.,” said Klein, who was appointed sole CEO last April, summing that SAP has doubled Qualtrics’ revenue.
He added: “They have done so well inside the SAP customer base, and now we are orifice them up. They can also now penetrate the market outside of our customer base.”
Klein said SAP will remain the maturity shareholder in Qualtrics after it goes public and that the company “will benefit fully from the success of Qualtrics after the IPO.”