UiPath Inc. and its shareholders raised $ 1.3 billion in an initial public offering, pricing the stock above a marketed range, but valuing the automation software maker lower than its funding round in February.
The company and investors sold nearly 24 million shares for $ 56 each on Tuesday, one said statement confirming an earlier Bloomberg News report. The stock was marketed for $ 52 to $ 54, a range the company increased from $ 43 to $ 50 on Monday.
The listing gives the company a market value of $ 29 billion based on the outstanding shares listed in the prospectus filed with the United States Securities and Exchange Commission. Including stock options for employees and restricted stock, that valuation is more than $ 31 billion.
UiPath raised $ 750 million in a fundraising round that valued it at $ 35 billion in February. That round was led by Alkeon Capital and Coatue, according to one statement at that time. A dip in some software stocks since then – including Snowflake Inc., which is down 20% from Feb. 1 – played a role in the IPO pricing decision, said a person familiar with the matter who asked not to. be identified because the information was private.
Valuation is still three times higher than in July when the company said it was valued at $ 10.2 billion in a funding round, up from a $ 7 billion valuation in a 2019 round.
UiPath Co-Founder and CEO of UiPath Daniel Dines
(Photo by Noam Galai / Getty Images for TechCrunch)
At the IPO, UiPath sold approximately 9.4 million shares, while shareholders included the chairman and donors Accel and Alphabet Inc.’s investment fund offered 14.5 million, according to its filings.
Started in an apartment in Romania with 10 people in 2005, UiPath now has a presence in nearly 30 countries, Chief Executive Officer and Co-Founder Daniel Dines wrote in a letter to investors. “Starting a business from a small place with no market has a hidden advantage: it forces you to think globally from day one,” he wrote.
Control of the CEO
Dines, who is also chairman, owns all of the class B shares of UiPath, representing 88.2% of the voting power in the company, the filing shows.
UiPath, now based in New York, reported a net loss of $ 92 million on $ 608 million in revenue for the 2021 fiscal year ending January 31. The net loss decreased from $ 520 million a year ago due to foreign exchange gains. It had $ 336 million in revenue the year before.
The offer is led by Morgan Stanley and JPMorgan Chase & Co .. UiPath’s shares are expected to start trading Wednesday on the New York Stock Exchange under the symbol PATH.
(Updates with explanation in second paragraph)