The IPO market remains red-hot right now. Indeed, investors looking for new growth options to choose from have yet another intriguing option. This week, it is expected that the UiPath IPO will officially launch. Expectations are that UiPath will begin trading under the ticker PATH on the New York Stock Exchange on Wednesday.
UiPath is an automation software maker. The software UiPath provides helps automate repetitive tasks, increasing efficiencies for its clientele. The company’s products have become increasingly attractive for companies looking to boost productivity amid the global pandemic. Accordingly, investors seem bullish on what will be PATH stock. Demand for this IPO appears to be much higher than initially expected.
Let’s dive into some of the details of this IPO, and what investors can expect from PATH stock when it begins trading this week.
What Investors Need to Know About the UiPath IPO
This higher-than-expected demand for PATH stock has resulted in UiPath increasing its target range from $43-$50 to $52-$54, according to an updated S-1 filing. Additionally, the company increased the number of shares it would offer from 21.3 million to 23.9 million as per the filing. This move would allow the company to raise as much as $1.3 billion from the offering at the maximum end of the range.
An over-allotment option for underwriters to purchase an additional 3.6 million shares could bring the total proceeds from the deal as high as $1.5 billion.
Indeed, this higher demand for PATH stock is understandable. According to recent reports, UiPath is certainly a growth gem. The company’s 2020 numbers were nothing but impressive.
UiPath reported revenue growth of more than 80% in a pandemic year. Additionally, the company was able to increase its gross margin by 7 percentage points. Accordingly, this isn’t only a fast-growing company, it’s a company that is growing profitably at this pace.
Right now, investors will be keeping an eye on how this stock performs post-target range increase. After all, fellow tech IPO AppLovin (NASDAQ:APP) dropped more than 19% on its first day of trading and remains well below its increased IPO target price range at the time of writing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.