“They clearly want to have a cleaner cap table so are using the proceeds to buy these back. They could buy this back anytime and now have the cash to do so,” he said. 

Still, the company also appears to need the cash for the business. While losses are narrowing, at the end of its fiscal 2024, it lost $183 million from operations and logged a net loss of $195 million when factoring in interest and other costs. 

Clayton, however, also believes the bankers are playing their typical IPO pricing games with that $52 to $57 range, which was lower than he expected. That means that the company might actually price above the range — which helps create positive headlines and excitement for the offering. If so, ServiceTitan can clean its cap table and walk away with more cash.