Blackstone-Backed Liftoff Targets $3.7 Billion Valuation in IPO

Liftoff Mobile, a company backed by Blackstone, is moving forward with a renewed attempt to list on the U.S. public markets with a target valuation of up to $3.66 billion [1]. The Redwood City, California-based firm plans to raise as much as $418 million by offering 19 million shares at a price range between $20 and $22 per share [2].

Key takeaways

• Liftoff is seeking to raise up to $418 million, a decrease from the $762 million it targeted in a previous, scrapped IPO attempt [1].
• The company provides marketing and monetization tools designed to help mobile app developers acquire users and increase engagement [3].
• Goldman Sachs, Jefferies, and Morgan Stanley are serving as the joint lead book-running managers for the offering [2].
• The firm intends to list its shares on the Nasdaq exchange under the ticker symbol "LFTO" [1].

Navigating a Challenging Software Market

The decision to proceed with the IPO follows a period of volatility for software-focused companies, which have faced investor skepticism due to the potential for disruption by rapid advancements in artificial intelligence [2]. Liftoff previously withdrew an initial launch attempt as the broader listings market struggled with this AI-related uncertainty [1]. Additionally, the market experienced significant jitters following the outbreak of the Iran war, which dampened risk-on sentiment in equities before hopes for a short-lived conflict helped stabilize stock markets [3].

Liftoff was established in 2021 when Blackstone merged its portfolio companies, Liftoff and Vungle [1]. The company’s current effort to go public serves as a barometer for the broader software sector, which has seen few large IPOs this year as investors re-evaluate valuations [2]. The company’s move follows the successful debut of the Japanese payments app PayPay, which is backed by SoftBank and raised approximately $880 million [1].

Why it matters

Industry observers view the Liftoff offering as a critical test of whether investor appetite for software listings is beginning to return [2]. According to IPOX CEO Josef Schuster, a successful IPO for the firm could pave the way for other similar companies to enter the public market [3]. The offering also highlights a broader trend among sponsors who are increasingly looking to move forward with the listings of their portfolio companies, bolstered by anticipation surrounding upcoming high-profile IPOs from firms like SpaceX and OpenAI [1].