RO unicorn UiPath targets USD 26 bln under planned USD 1 bln IPO

Romania-born, New York-based startup turned unicorn UiPath, which automates repetitive work by Robotic Process Automation (RPA), is targeting a valuation of nearly USD 26 billion in its initial public offering (IPO) on the New York Stock Exchange, Reuters reported citing documents filed by the companies with the SEC.

The company was most recently valued at USD 35 billion in the latest funding round earlier this year. In the financial year ended in January 2021, UiPath recorded annualized recurring revenues (ARR) of USD 580 mln, up by 65% compared to the previous year, and a net loss of USD 92 mln, down from USD 520 mln in the previous year.

UiPath has been capitalizing on the robust demand for robotic process automation services from companies shifting to remote working during the COVID-19 pandemic.

The company plans to sell 6.8 million shares while existing shareholders will sell an additional 14.5 million shares as part of the offering, the regulatory filing show. The IPO will be priced between USD 43 and USD 50 per share, raising about USD 1.06 billion at the top end of the range.

UiPath's co-founder and CEO Daniel Dines will sell about 1.38 million UiPath shares in the IPO, for which he could get over USD 60 million. After the IPO, he will still hold 109.5 mln UiPath class A and Class B shares that could be worth USD 4.7-5.5 bln, depending on the final price. Dines will hold 88% of the company's voting power after the IPO, thanks to the class B shares, which give him more voting rights than the common class A shares, according to the company's listing prospectus.

(Photo source: UiPath)