UiPath’s first IPO pricing could be a warning to late-stage investors

UiPath’s Interesting IPO pricing Shows a Plunge in Value

UiPath is aiming for a lower valuation as per a new S-1/A filing.

UiPath disclosed that it expects its IPO to price between $43 and $50 per share. Using a simple share count of 516,545,035, the company would be worth $22.2 billion to $25.8 billion at the lower and upper extremes of its expected price interval. Neither of those numbers is close to what it was worth, in theory, just a few months ago.

It plans to raise $990 million by offering 21.3 million shares (68% insider) at a price range of $43 to $50. At the midpoint of the proposed range, UiPath would command a fully diluted market value of $26.0 billion.

A few months back, robotic process automation (RPA) unicorn UiPath raised a huge $750 million round at a valuation of around $35 billion. The capital came ahead of the company’s expected IPO, so its then-new valuation helped provide a measuring stick for where its eventual flotation could price.

For UiPath, its initial IPO price interval is a disappointment, though the company could see an upward revision in its valuation before it does sell shares and begin to trade. But more to the point, the company’s private-market valuation bump followed by a quick public-market correction stands out as a counter-example to something that we’ve seen so frequently in recent months.

Read more here: UiPath’s first IPO pricing could be a warning to late-stage investors

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