UiPath, the first Romanian unicorn company, announced this week that it managed to sell shares over the target price range through its recent Initial Public Offering (IPO) held on the New York Stock Exchange, an operation through which UiPath raised 1.34 billion dollars.
The company’s founder, Daniel Dineș, said it managed to sell 23.89 million shares at a price of $ 56 per share. Thus, following the IPO, UiPath is now valued at $ 29 billion. UiPath shares are scheduled to trade on the New York Stock Exchange under the symbol “PATH“.
UiPath, a company that has as shareholders names such as Accel, Coatue, Dragoneer, IVP and Sequoia, uses artificial intelligence and digital tools to help large companies and government agencies automate their routine processes in areas such as accounting and human resources. Out of the shares sold, 9.4 million came from UiPath and about 14.5 million from current investors.
The initial public offering of UiPath comes amid an explosion in the listings of companies in the technology sector, given that start-ups want to take advantage of the high demand from investors for new, high-growth shares in the technology sector.
UiPath’s revenue exceeded $ 600 million in 2020
Founded in Romania in 2005, under the name DeskOver and renamed UiPath in 2015, the company has among its clients entities such as the CIA, the US Navy, McDonald’s Corp, Duracell and Swiss Re. In the tax year ended January 31, 2021, UiPath posted a loss of $ 92.40 million, lower than the previous year’s loss of $ 519.90 million. Revenue rose to $ 607.60 million from $ 336.2 million.
Currently, UiPath wants to expand after during the pandemic several companies became interested in automating their processes to reduce costs. CEO Daniel Dines recently said that current UiPath customers in the retail, healthcare and finance sectors are using the company’s services to cope with a significant change in demand caused by the coronavirus pandemic.
In 2018, UiPath became the first start-up founded in Romania to acquire the status of unicorn, meaning that it was valued at over 1 billion dollars. Meanwhile, the company has moved its headquarters to the United States.
Daniel Dineș is still a decision maker in the company
The company’s co-founder, Daniel Dineș, still holds decision-making control among the company’s shareholders, because his shares, class B, have a voting power 35 times higher than class A shares.
“Mr. Dines will have the ability to control the outcome of matters that require shareholder approval, including the election of directors and approval of significant corporate transactions, such as a merger or other sale of our company or assets,” UiPath’s listing prospectus discloses.
Dineș declared that the company is still at the beginning of a long road that will take several years to a fully automated organization. He declares himself “incredibly proud” that he represents the first company in Romania to reach the largest stock exchange in the world.