Daniel Loeb-backed SentinelOne eyes over $7 billion valuation in U.S. IPO

(Reuters) - Cybersecurity firm SentinelOne Inc, backed by billionaire investor Daniel Loeb's hedge fund Third Point, is aiming for a valuation of over $7 billion in its U.S. initial public offering (IPO), according to a regulatory filing on Monday.

SentinelOne, whose other investors include venture capital backers Tiger Global, Sequoia Capital and Insight Venture Partners, plans to sell 32 million shares priced at between $26 and $29 per share, raising $928 million at the top end of the range.

Founded in 2013, SentinelOne protects laptops and mobile phones from security breaches by using artificial intelligence technology to identify unusual behavior in enterprise networks. Its business had a boost as most employees started working from home during the COVID-19 pandemic.

The Mountain View, California-based company raised $267 million in November from investors including Tiger Global and Sequoia at a valuation of more than $3 billion, almost three times what it was valued in February 2020.

Entities affiliated with Tiger Global, Insight Venture Partners, Third Point Ventures and Sequoia Capital, have separately agreed to purchase a number of shares with an aggregate price of about $50 million, SentinelOne said in the filing.

SentinelOne's IPO plans comes as Wall Street's record-breaking run for stock market flotations shows no sign of slowing down. With more than six months until the year ends, U.S. IPOs have already totaled $171 billion, eclipsing the 2020 record of $168 billion, according to data from Dealogic.

SentinelOne will list its stock on the New York Stock Exchange under the symbol "S".

Morgan Stanley and Goldman Sachs & Co are lead underwriters for the offering.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Krishna Chandra Eluri)