UiPath shares closed 23 per cent up on their first day of trading, valuing the business at almost $US36 billion, up by a billion after its most recent raising, and tipping $1.3B into the company coffers. (And it’s valued at $38B if you include all those juicy employee stock options.)
The result followed the pricing of its initial public offering of 23,890,777 shares of Class A common stock to the public at $56.00 per share.
As robotic process automation has grown in popularity, companies such as UiPath have been on a fund raising tear.
Earlier this year it has closed a $750 million Series F funding round at a post-money valuation of $35 billion a massive spike in just 8 months since its previous raising. Just two years ago the company was valued at only $7 billion following a $568 Series D fundraising, a $225 series E round bumped up the valuation to just over $10 billion.
It is not alone. The huge acceleration in digital transformation projects – often underpinned by a large component of automation has put the sector in the hot seat. 10 months ago, for instance, rival Blue Prism raised $124M at a valuation of $1.2B. In 2019 Automation Anywhere raised $290M at a valuation of $6.8 billion.
The company offered 9,416,384 shares of Class A common stock and the selling stockholders named in the prospectus are offering 14,474,393 shares of Class A common stock. In addition, UiPath says it has granted the underwriters a 30-day option to purchase up to 3,583,616 additional shares of Class A common stock at the initial public offering price less underwriting discounts and commissions. UiPath will not receive any proceeds from the sale of shares by the selling stockholders.
The shares began trading on the New York Stock Exchange under the ticker symbol “PATH” on April 21, 2021, and the offering is expected to close on April 23, 2021, subject to customary closing conditions.
Morgan Stanley and J.P. Morgan acted as lead bookrunners for the offering. BofA Securities, Credit Suisse, Barclays, and Wells Fargo Securities are acting as active bookrunners for the offering. SMBC Nikko, BMO Capital Markets, Mizuho Securities, KeyBanc Capital Markets, TD Securities, Truist Securities, Cowen, Evercore ISI, Macquarie Capital, Nomura, and RBC Capital Markets are acting as passive bookrunners for the offering. Canaccord Genuity, D.A. Davidson & Co., Oppenheimer & Co., and Needham & Company are acting as co-managers for the offering.
According to Daniel Dines, UiPath Co-Founder and CEO, “Today marks a major milestone for UiPath. Six years ago, this company consisted of 10 people working in a small apartment in Romania. Now, we are a multinational business operating in nearly 30 countries including Australia and one of the fastest-growing enterprise software companies in history. I am also incredibly proud that we are the first Romanian-born company to go public on the New York Stock Exchange.”
“While today signifies a new chapter in UiPath’s story, we are still in the early days of a multi-year journey to the fully automated enterprise. We will continue to focus on scaling automation so we can set people free of repetitive work and truly unlock human potential at scale, ” he said.
Dines said he wanted to pay special tribute to UiPath employees, “who embody our company values every day and who have worked tirelessly to bring our mission and vision to life.”
The offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from: Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attn: Prospectus Department; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 866-803-9204 or by email at [email protected]