Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/uipath-inc" target="_blank" data-smartkarma-citation="entities:32975:1" rel="noopener">UiPath Inc (PATH US)</a> plans to complete its IPO in the coming days. The IPO price range is between $43 to $50 per share. The<a href="https://www.marketwatch.com/story/uipath-sets-ipo-terms-to-raise-up-to-3404-million-and-be-valued-at-up-to-26-billion-2021-04-12" target="_blank" rel="noopener"> company</a> is offering 6.81 million Class A shares in the IPO. The existing shareholders are offering 14.47 million Class A shares. At the high end of the IPO price of $50 per share, the total amount from the IPO proceeds would be $1.06 billion. After the IPO, there will be a total of 516.55 million Class A and Class B shares outstanding.At the high end of the IPO price range ($50 per share) the company could be valued at nearly $25.8 billion. This is below the company's recent private market valuation of <a href="https://www.usnews.com/news/technology/articles/2021-04-12/software-maker-uipath-aims-for-nearly-26-billion-valuation-in-us-ipo#:~:text=The%20New%20York%2Dbased%20company,funding%20round%20earlier%20this%20year." target="_blank" rel="noopener">$35 billion in February 2021</a><a href="https://www.usnews.com/news/technology/articles/2021-04-12/software-maker-uipath-aims-for-nearly-26-billion-valuation-in-us-ipo#:~:text=The%20New%20York%2Dbased%20company,funding%20round%20earlier%20this%20year." target="_blank" rel="noopener">, which was more than three times the value of its previous financing round in July 2020. </a>It appears that the recent tech IPO weakness has negatively impacted the pricing of UiPath's IPO as the implied valuation of $25.8 billion represents nearly 26% haircut from its recent private market valuation of $35 billion.The average % YoY change in sales in 2020 [A] for the major enterprise software/platform stocks was 46.8% in 2020 and UiPath's sales growth was nearly double the comps' average. The average operating margin [B] of the major enterprise software/platform stocks was -14.6% in 2020, which was slightly lower than UiPath's operating margin of -18.2%. The combination of [A] and [B] for UiPath was 62.6%, which was nearly double the figure for average of the major enterprise software/platform stocks (32.2%).

UiPath Inc (PATH US) plans to complete its IPO in the coming days. The IPO price range is between $43 to $50 per share. The company is offering 6.81 million Class A shares in the IPO. The existing shareholders are offering 14.47 million Class A shares. At the high end of the IPO price of $50 per share, the total amount from the IPO proceeds would be $1.06 billion. After the IPO, there will be a total of 516.55 million Class A and Class B shares outstanding.At the high end of the IPO price range ($50 per share) the company could be valued at nearly $25.8 billion. This is below the company's recent private market valuation of $35 billion in February 2021, which was more than three times the value of its previous financing round in July 2020. It appears that the recent tech IPO weakness has negatively impacted the pricing of UiPath's IPO as the implied valuation of $25.8 billion represents nearly 26% haircut from its recent private market valuation of $35 billion.The average % YoY change in sales in 2020 [A] for the major enterprise software/platform stocks was 46.8% in 2020 and UiPath's sales growth was nearly double the comps' average. The average operating margin [B] of the major enterprise software/platform stocks was -14.6% in 2020, which was slightly lower than UiPath's operating margin of -18.2%. The combination of [A] and [B] for UiPath was 62.6%, which was nearly double the figure for average of the major enterprise software/platform stocks (32.2%). 

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Uipath filed to IPO on the NYSE with a placeholder amount of $1bn. The company offers robot process automation software integrating AI and machine learning to businesses in a variety of sectors and geographies and offers the high growth rates and strong customer retention that investors find attractive.

Uipath filed to IPO on the NYSE with a placeholder amount of $1bn. The company offers robot process automation software integrating AI and machine learning to businesses in a variety of sectors and geographies and offers the high growth rates and strong customer retention that investors find attractive.

Uipath IPO – Great Business but Is There a Moat?

United States

UiPath, Inc. provides software solutions. The Company designs and develops robotic process automation software to build, manage, run, engage, measure, and govern automations across departments within an organization. UiPath serves customers worldwide.

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UiPath Inc (PATH US)

UiPath IPO Preview

UiPath Inc (PATH US) plans to complete its IPO in the coming days. At the high end of the IPO price range ($50 per share) the company could be...

Douglas Kim

Uipath IPO – Great Business but Is There a Moat?

Uipath offers RPA software to help organisations improve efficiency and reduce costs, solving bottlenecks related to engineering talent.

Mio Kato

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