Travel technology company Navan is eyeing a $6.45 billion valuation in its US IPO

Written by Prakhar Srivastava

(Reuters) – Travel and expenses company Navan said on Friday it is targeting a valuation of up to $6.45 billion in its U.S. initial public offering, below the level it reached in a 2022 funding round, as it presses ahead with listing plans despite the U.S. government shutdown.

The Palo Alto, California-based company plans to raise about $960 million by offering 36.92 million shares at a price of between $24 and $26 per share. Its shares are expected to begin trading on the Nasdaq Stock Exchange under the ticker symbol “NAVN.”

The offering comes amid a rebound in IPO activity in the US, driven by easing market volatility, which has lifted investor sentiment after a period of trade policy uncertainty. The strong market debuts of Alliance Laundry and Phoenix Education Partners on Thursday underscored renewed appetite for risk among investors.

However, the US government shutdown threatens to derail the recovery, with the Securities and Exchange Commission suspending reviews of initial public offerings and other regulatory approvals as they operate with limited staff.

“The IPO comes amid extreme volatility in stocks overall and significant weakness in some U.S. IPOs this year,” said Joseph Schuster, CEO of IPO research firm IPOX.

“While IPO sentiment remains generally positive, we expect this to impact future IPO demand,” Schuster added. “We therefore believe that exporters need to be flexible to accommodate this changing market environment with more attractive offer terms.”

Navan was valued at $9.2 billion in 2022 after raising $300 million in a Series G funding round.

Founded in 2015 as TripActions by Ariel Cohen and Ilan Twigg, Navan initially focused on corporate travel management, aiming to modernize services traditionally provided by companies like American Express and SAP Concur.

Over the years, Navan has expanded into corporate payments and expense management, and has spread its tentacles across the globe, serving global clients including Zoom Communications and Lyft, according to its website.

Among the guarantors of this offering are Goldman Sachs, Citigroup, Jefferies, Mizuho, ​​and Morgan Stanley.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Alan Barona)