Christian Klein, co-CEO of the German software and cloud computing giant SAP, speaks during a press conference to present the financial results of SAP for 2019 on January 28, 2020 in Walldorf, southwestern Germany. – German software giant SAP reported a bottom line undermined by heavy restructuring costs, but raised forecasts for next year.
Daniel Roland | AFP | Getty Images
LONDON – SAP CEO Christian Klein said investors’ demand for shares in enterprise software company Qualtrics exceeds supply ahead of the company’s stock market debut.
SAP acquired Qualtrics in November 2018 for $ 8 billion, and in July 2020 announced that it intends to make the company public.
“We look forward to the IPO, which is also massively oversubscribed,” Klein said in an interview with CNBC’s Squawk Box Europe on Wednesday.
Qualtrics aims to raise up to $ 1.46 billion through IPOs, which could take place imminently. In an amended file with the U.S. Securities and Exchange Commission on Monday, it said it intends to sell 50.4 million shares at $ 27-29 each. The company previously asked to sell 49.2 million at $ 22-26 each. By listing, Qualtrics can achieve a market capitalization of up to $ 14.6 billion. SAP plans to use Qualtrics’ IPO offer to help repay the $ 1.76 billion debt, according to the record.
“The acquisition is a massive success,” said Klein, who was named sole executive director last April, adding that SAP doubled Qualtrics’ revenue.
He added: “They have done so well in the SAP customer base, and now we are opening them up. They can now enter the market outside our customer base as well.”
Klein said SAP will remain the majority shareholder in Qualtrics after it goes public and that the company “will fully benefit from Qualtrics’ success after the IPO.”