Christian Klein, co-CEO of German software and cloud computing giant SAP, speaks during a press conference to present SAP’s financial results for 2019 on January 28, 2020 in Walldorf, southwest Germany. – German software giant SAP reported that the end result was undermined by heavy restructuring costs, but raised forecasts for the following year.
Daniel Roland | AFP | Getty Images
LONDON – SAP CEO Christian Klein said demand for equity investment from business software firm Qualtrics outstrips supply before the company’s stock market debut.
SAP acquired Qualtrics in November 2018 for $ 8 billion and in July 2020 announced that it intended to make the company public.
“We’re looking forward to the IPO, which, incidentally, is too subscribed,” Klein said in an interview with CNBC’s Squawk Box Europe on Wednesday.
Qualtrics aims to raise up to $ 1.46 billion through the IPO, which could take place imminently. On Monday, in an amended presentation to the U.S. Securities and Exchange Commission, he said he plans to sell 50.4 million shares between $ 27 and $ 29 each. The firm previously filed for the sale of $ 49.2 million between $ 22 and $ 26 each. The listing could cause Qualtrics to achieve a market capitalization of up to $ 14.6 billion. SAP plans to use Qualtrics ’IPO to help repay $ 1.76 million in debt, according to the filing.
“The acquisition is a massive success,” said Klein, who was named sole CEO last April, adding that SAP has doubled Qualtrics ’revenue.
He added: “They have done so well in the SAP customer base and now we are opening them up. They can also penetrate the market outside of our customer base.”
Klein said SAP will remain the majority shareholder in Qualtrics after it is made public and that the company “will fully benefit from Qualtrics’ success after the IPO.”