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UiPath’s IPO Is Expected In A Few Months

by sol-admin

At the finish line of this year, the top news of the RPA market became a statement by UiPath that it has submitted a draft registration statement on a confidential basis to the U.S. Securities and Exchange Commission (the “SEC”) for a proposed public offering of its Class A common stock.

That means the leader among RPA vendors will likely hit the markets in the first months of 2021. Like other enterprise software companies—such as Snowflake, C3.ai, and Palantir—the offering should do extremely well.

Earlier this year, UiPath raised $225 million at a $10.2 billion valuation. That was up from $7 billion in a previous round in April 2019. According to Bloomberg, when the time of the IPO comes, the software company could be valued at more than $20 billion.

The prospective successful IPO is due to the fact that UiPath is the leader in RPA, which allows for the automation of repetitive and tedious tasks. And this sector is the fastest-growing segment of enterprise software. A key reason is that the ROI (Return On Investment) is quick and substantial. Not to mention, that due to the pandemic crisis there is a shortage of companies that now are worth investing in. Furthermore, UiPath claims to have annual revenue of about $360 million and more than 6,300 customers, including Amazon, Bank of America, and Verizon. It says 50% of Fortune 20 companies are clients.

“By filing for an IPO, UiPath is signaling that it believes 2021 will usher in a new, upward-moving business cycle in which it plans to play a significant role.”

Charles King, Analyst, Pund-IT Inc.