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Summary
- UiPath shares surged 23% on the New York Stock Exchange debut on Wednesday.
- The company and its shareholders raised US$1.3 billion in one of the biggest software IPOs in the US.
- The firm sold almost 24 million shares to investors at US$56 each, above its expected price range of US$52 to US$54.
Automation technology firm UiPath Inc. made a strong debut on the New York Stock Exchange (NYSE) on Wednesday after successfully raising US$1.3 billion in one of the largest software initial public offerings (IPO).
The stock rallied 23% before closing the day’s trade at US$69 apiece, against its offer price of US$56, in the overnight trade on the Wall Street, giving UiPath a market capitalisation of about US$35.8 billion.
Image source: © Mrallen | Megapixl.com
The stock opened trade at US$65.50 and hit intraday high and low of US$70.74 and US$64.84, respectively.
The shares of the company were listed on the NYSE under the ticker ‘PATH’.
UiPath Raises US$1.3B in One of the Largest US Software IPOs
UiPath Inc. and its shareholders raised US$1.3 billion via the IPO by selling 23,890,777 shares at a price of US$56 per share, above its expected price range of US$52 to US$54.
The New York-based company has granted the underwriters a 30-day option to buy up to 3,583,616 additional shares at the IPO price less underwriting discounts and commissions. If underwriters manage to buy their allotted shares, UiPath’s IPO will be the third-largest ever by a US software firm, after Snowflake and Qualtrics.
Cloud computing-based data warehousing company Snowflake had raised US$3.4 billion in its offering in September last year, while software maker Qualtrics had garnered US$1.78 billion via IPO in January 2021.
Must watch: Snowflake Blockbuster IPO debut
Ahead of IPO, UiPath Raises US$750 Million in Series F Funding
Earlier in February this year, UiPath had closed a US$750 million Series F funding round at a market valuation of US$35 billion.
The funding round was led by existing investors Alkeon Capital and Coatue. Many returning investors also participated in the round such as funds and accounts advised by T. Rowe Price Associates, Inc, Dragoneer, Altimeter Capital, Sequoia, and Tiger Global.
UiPath Reports US$607.6M Revenue in 2020
The company reported a net loss of US$92.4 million for the financial year ended 31 January 2021, as compared to US$519.9 million for the year-ago period. Its revenue rose 81% to US$608 million as against US$336 million a year earlier.
Started in an apartment in Romania by former Microsoft executive Daniel Dines and Marius Tirca in 2005, the company is now a leader in the robotic process automation market.
Image source: © Tupungato | Megapixl.com
Backed by investors including Accel, Coatue, Dragoneer, Sequoia, Tiger Global and T. Rowe Price Associates, the New York-based company has a presence in about 30 countries.
The tech startup uses artificial intelligence and digital tools to help big business houses and government agencies automate repetitive and routine tasks in fields such as accounting and human resources. During the COVID-19 pandemic, the company witnessed a surge in demand for its robotic process automation services as more companies shifted to remote working.
Also Read: Artificial Intelligence, The Rising Trend In 2020 and Beyond
