Some months Returning, robotic process automation (RPA) unicorn UiPath has raised a huge round of funding of $ 750 million for a valuation of around $ 35 billion. The capital anticipated the company’s planned IPO, so its reassessment at the time helped provide a measuring tool to determine where its eventual IPO might lie.
UiPath then filed a request for publication. But today the company’s first IPO price bracket was released, not valuing the company where its last private backers expected.
In an S-1 / A filing, UiPath revealed that it expects its IPO to cost between $ 43 and $ 50 per share. Using a mere stock 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 predicted price range. None of these numbers come close to what they were worth, in theory, just a few months ago.
According to IPO watch group Renaissance Capital, UiPath is worth up to $ 26.0 billion on a fully diluted basis. It is not much more than its simple assessment.
For UiPath, the initial price range of its IPO is a disappointment, although the company may see an upward revision in its valuation before it sells its shares and begins trading. But more specifically, the rise in the company’s valuation in the private market followed by a rapid correction in the public market stands out as a counterexample to something we’ve seen so often in recent months.
Is UiPath’s first IPO price interval another indicator of the cooling of the IPO market?
Do you remember Roblox?
If you think back to the end of 2020, Roblox decided to cancel its IPO and pursue a direct listing instead. Why? Because a few companies like Airbnb had gone public to what appeared to be strong valuation brands only to see their values skyrocket once they started trading. So, Roblox decided to raise a huge amount of private capital and then list it directly.