ServiceTitan Inc, a U.S. software startup that was valued at $9.5 billion earlier this year, has kicked off preparations for an initial public offering (IPO) in early 2022, according to people familiar with the matter.

ServiceTitan, which caters to the booming home improvement sector, has in recent weeks invited investment banks and law firms to pitch for roles in its IPO, the sources said. The company is expected to finalize advisors in the coming weeks, they added.

The Los Angeles-based company is hoping to be valued in the IPO at as much as double the nearly $9.5 billion valuation it commanded in a private fundraising round in June, the sources said.

The sources cautioned that the timing and size of the IPO could change and asked not to be identified because the IPO preparations are confidential.

ServiceTitan did not immediately respond to a request for comment.

$230 Billion in New Stock Issue

Companies have raised an all-time record of more than $230 billion through stock market flotations so far this year, according to data from Dealogic, as high corporate valuations made such debuts more attractive.

Since its founding in 2012, ServiceTitan has emerged as a dominant player in a niche market, making software used by more than 100,000 contract workers, including technicians serving the HVAC (heating, ventilation and air-conditioning) sector. It also provides training and tech support.

ServiceTitan's business was buoyed by the COVID-19 pandemic, which spurred a demand for house improvement services among people staying at home.

The company, whose investors include Tiger Global Management and Sequoia Capital, said in March that it generated annual recurring revenue of more than $250 million, growing nearly 50% year-over-year. According to startup data platform PitchBook, ServiceTitan has so far raised over $1 billion from investors.