(Reuters) -SailPoint was valued at $12.8 billion after its shares debuted in line with their offer price on Thursday, marking a tepid return to the stock market for the Thoma Bravo-backed identity security company.

The Austin, Texas-based company's stock opened at $23 per share, adding to a string of subdued debuts this year amid heightened investor scrutiny over valuations.

The IPO market's recovery has been uneven so far in 2025, with traders weighing the push for deregulation against policy uncertainty and a likely delay in rate cuts.

Shares of defense and space firm Karman Holdings, which also started trading on Thursday, soared 36%. But Venture Global's much-anticipated IPO fell short of expectations last month.

SailPoint first went public in 2017, three years after being acquired by Thoma Bravo, which bought it again in 2022 via a $6.9 billion deal.

The company lets customers, including Detroit automaker General Motors and chocolate maker Hershey, establish and control their security processes.

Stricter data privacy regulations, a surge in global cyberattacks and the rise of artificial intelligence-driven cybersecurity threats have boosted the demand for services offered by companies such as SailPoint.

"SailPoint appears well placed to capitalize on concerns about the increase in cyber threats," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

The company, along with Thoma Bravo, raised $1.38 billion in an upsized IPO.

IPO HOPES

Data released earlier this week showed U.S. consumer prices rising at their fastest pace in nearly 1-1/2 years - potentially delaying rate cuts and adding to investors' worries.

Should inflation remain elevated, the U.S. Federal Reserve may have to raise interest rates instead, said Ross Carmel, partner at securities law firm Sichenzia Ross Ference Carmel.

Yet, IPOs may get a boost from venture backers eager to list.

"The market's been dying to move forward," said Parkway Venture Capital's co-founder and general partner Jesse Coors-Blankenship.