After a rise Review, UiPath valued its IPO last night at $ 56 per share, a few dollars above its increased target range. The above price meant that the unicorn was putting more capital on its books through its public offering.
For a business in a market as competitive as robotic process automation (RPA), funds are welcome. In fact, RPA has been a priority for startups and established businesses over the past year or so. During this time, corporate pillars like SAP, Microsoft, IBM, and ServiceNow bought smaller RPA startups and built their own, all in an effort to find their way into an increasingly growing market. lucrative.
In June 2019, Gartner reported that RPA was the fastest growing area in enterprise software, and although growth has slowed since, the industry is still gaining attention. UIPath, which Gartner said was the market leader, rode this wave, and today’s influx of capital should help the company maintain its position in the market.
It should be noted that when the company had its last private financing round in February, it grossed $ 750 million for an impressive valuation of $ 35 billion. But as TechCrunch noted during its pivot to public markets, this round has valued the company above its final IPO price. As a result, this week’s public offering of $ 56 per share turned out to be a modest IPO to UiPath’s final private valuation.
Then a larger set of stock traders grabbed its shares and offered its shares higher. The former unicorn’s shares closed their first day of trading at precisely $ 69, above the price per share at which the company closed its last private round.
So despite a somewhat roundabout journey, UiPath closed its first day as a public company worth more than its Series F – when it sold 12,043,202 shares, which were sold at $ 62.27576 each, by filing with the SEC. Put simply, UiPath closed today for a higher value per share than in February.
How you might value the company, whether you prefer a straightforward or fully diluted stock count, doesn’t matter at this point. UiPath had a great day.
While it is unclear what the company could do with the profits, it is likely that it will continue to try to expand its platform beyond pure RPA, which could become constrained by the market over time as companies consider other, more modern approaches to automation. By adding additional automation capabilities – organically or through acquisitions – the business can begin to cover larger parts of its market.
TechCrunch spoke to the CFO of UiPath Ashim Gupta today curious about the company’s choice of a traditional IPO, its general avoidance of adjusted parameters in its SEC filings, and the current temperature of the IPO market. The last question was on our minds, because some companies withdrew their public listing following a market described as “difficult”.