According to MarketWatch, UiPath Inc. PATH has set the terms for its initial public offering, in which the New York-based maker of automation software will be priced at up to $25.8 billion. The initial public offering (IPO) is estimated to cost between $43 and $50 per share. In the IPO, the corporation will offer 6.81 million Class A shares in order to raise up to $340.4 million, while selling shareholders will offer 14.47 million Class A shares.
Following the IPO, the firm anticipates having 516.55 million Class A and Class B shares outstanding. The company is planning to go public at a time when the Renaissance IPO ETF IPO, -0.03% is down 0.2% year to date, while the S&P 500 SPX, -0.02% is up 9.9%.
Who is UiPath?
UiPath started in 2005 as a 10-people team based in Bucharest, led by Daniel Dines. In the beginning, they outsourced automation libraries and software to some of the world’s biggest companies.
According to Wikipedia, UiPath develops software to automate repetitive digital tasks normally performed by people. The technology combines emulating how humans read computer screens (AI Computer Vision) with APIs and gives users access to prebuilt automation components that can be combined to automate routine processes. Its earlier products simplified tasks performed using other business software such as CRM or ERP systems, in internal and back-office areas like accounting, human resources paperwork, and claims processing. Newer applications for the company’s software include coordinating with artificial intelligence systems to simplify repetitive front office tasks including customer management.
UiPath’s main product is the UiPath Automation Platform. The platform combines a family of low-code visual integrated development environment (IDE) products called Studio for process creation, with client-side agents called Robots that execute those processes. The processes are deployed, monitored, and managed remotely with a central management tool called Orchestrator.
What is RPA?
Robotic process automation (RPA) is a software technology that makes it easy to build, deploy, and manage software robots that emulate humans actions interacting with digital systems and software. Just like people, software robots can do things like understanding what’s on a screen, complete the right keystrokes, navigate systems, identify and extract data, and perform a wide range of defined actions. But software robots can do it faster and more consistently than people, without the need to get up and stretch or take a coffee break.
Daniel Dines, the CEO and the co-founder of the company wrote in a letter to the investors: “Starting a company from a small place with no market has a hidden advantage: It forces you to think globally from day one,”
Dines, who also serves as chairman, holds all of UiPath’s class B shares, which account for 88.2 % of the company’s voting power.
UiPath announced in July that it had been valued at $10.2 billion in a funding round, up from $7 billion in a previous round in 2019.
In the fiscal year that ended in January 2021, UiPath posted a net loss of $92 million on revenue of $608 million. Because of foreign exchange earnings, its net loss was reduced from $520 million a year earlier. It made $336 million in sales the previous year.
The offering is led by Morgan Stanley and JPMorgan Chase & Co. UiPath intends to go public on the New York Stock Exchange under the ticker symbol PATH.