UiPath debuts on New York Stock Exchange with shares priced at $56
UiPath appears to have settled for a down-round IPO as it was valued at $29 billion, down from $35 billion in February
UiPath Inc., a robotic process automation (RPA) software maker, debuted on the New York Stock Exchange today under the ticker PATH with its stock priced at $56 a share.
The firm’s initial public offering of 23.8 million shares consists of 9.4 million units of Class A common stock offered by UiPath, and 14.4 million shares of the same being offered by the selling stockholders named in firm’s prospectus filed with the U.S. Securities and Exchange Commission (SEC).
A leader in workspace automation, UiPath’s stock was valued higher than the company’s marketed range of $52-$54, but also came in lower than $62.28, the price at which UiPath raised funds in February at a $35 billion valuation. The firm has also allowed underwriters the option to purchase as many as 3.6 million additional shares for overallotments.
While the down-round IPO might also be a symptom of cooling investor excitement around technology stocks, UiPath’s sale of stock will nonetheless bring in $530 million in capital and give it a market capitalization of $29.1 billion. The firm’s prospectus offers few details on how the firm plans to use these funds, noting that in addition to routine corporate expenditure the firm, “may also use a portion of the net proceeds to acquire complementary businesses, products, services, or technologies.”
Earlier in March, UiPath announced its $40.5 million acquisition of Cloud Elements, which provides an API integration platform for software as a service application providers and the digital enterprise. The firm also recently added DocuSign’s chief executive Dan Springer to its board of directors.
UiPath clocked revenues of $608 million for the year ended Jan. 31, 2020, a jump of 81% on a yearly basis, according to firm’s financial filings. The RPA software maker has also significantly trimmed its losses, bringing them down to $92 million, as compared to $520 for the year ended Jan 31, 2019.
UiPath faces competition from Automation Anywhere, Blue Prism, EdgeVerve Systems and Microsoft, and noted in its filings that one of the risk factors to its business may emerge from native-cloud providers entering the space and providing services at competitive price.
According to its filings, the firm has just under 8,000 customers, “including 80% of the Fortune 10 and 61% of the Fortune Global 500,” companies. Notable UiPath customers include financial institutions Bank of America, Bank of Montreal and, Sumitomo Mitsui Banking Corporation, as well as retail brands like Uber and Foot Locker.
