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SAP CEO Says Qualtrics Spin Off IPO Is 'Massively Oversubscribed:' CNBC

  • SAP SE (NYSE: SAP) Chief Executive Christian Klein told CNBC in an interview that its enterprise software unit spin off Qualtrics International Inc (NASDAQ: XM) is “massively oversubscribed.”
  • Qualtrics could raise $1.46 billion from the IPO at a $14.6 billion valuation. It was upsized twice from a planned range of $20 to $24 to an eventually offered range of $27 to $29, as per Barron’s.
  • SAP had acquired Qualtrics for $8 billion in November 2018 and offered to list the entity as a separate public unit in just 18 months from acquisition.
  • Klein said that SAP has doubled Qualtrics revenue since acquisition with SAP’s huge customer base and aims for Qualtrics to “penetrate the market outside of our customer base.” 
  • According to the filing, SAP intends to use Qualtrics IPO proceeds to repay $1.76 billion of debt. 
  • Post the IPO, SAP will remain the majority shareholder in Qualtrics.
  • SAP shares are down 1.20% at $133.26 in the pre-market session on the last check Wednesday.

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