Robotic process automation provider UiPath Inc. has shared the target price range for its upcoming initial public offering, revealing that it’s seeking a valuation of nearly $26 billion.

In a Monday update to the previously released prospectus for the IPO, the company disclosed plans to sell shares at $43 to $50 apiece. UiPath intends to make 6.81 million shares available for investors, which means it could raise as much as $340.4 million at the high end of the range. A number of existing UiPath investors, including Accel and Alphabet Inc.’s CapitalG fund, plan to sell an additional 14.5 million shares. 

At the top end of the range, the IPO could give the company a market capitalization of $25.8 billion. That puts the listing on track to be one of the biggest of the year in the enterprise software category. 

UiPath sells an RPA platform that enables companies to reduce costs and operational errors by automating repetitive work. UiPath’s platform uses artificial intelligence models to learn how employees perform common tasks in business applications. Those models then create so-called software robots that can replicate employees’ workflow, thereby dramatically reducing the need for manual input. 

UiPath says it has saved some enterprise customers hundreds of thousands of person-hours previously spent on repetitive work. According to the IPO prospectus, the company’s software is used by more than 7,000 organizations worldwide, including more than 60% of the Fortune Global 500. 

The growing adoption of RPA software among enterprises has translated into robust revenue growth for UiPath. The company reached revenues of $607.6 million in the fiscal year ended Jan. 31, a jump of no less than 81% from the previous 12 months. Chief Executive Officer Daniel Dines (pictured) wrote in a letter attached to the IPO filing that UiPath is “one of the fastest growing modern enterprise software companies ever.”

UiPath managed to achieve 81% top-line growth last year while narrowing its losses at the same time. The company’s net loss dropped from $519.9 million in the fiscal year ending Jan. 31, 2020, to $92.3 million in the year ended Jan. 31.

The $25.8 billion market capitalization UiPath could achieve at the top end of the IPO price range is below the $35 billion private valuation it received after a February funding round. Since February, higher U.S. Treasury yields have set off broad declines in the market capitalization of high-growth tech firms. The volatility is leading some IPO hopefuls in the tech industry to consider delaying their planned listings. 

Depending on investor demand and stock market conditions, UiPath could raise its IPO pricing target as the offering draws closer. Qualtrics International Inc., another enterprise software provider that has been seeing strong revenue growth, boosted its pricing at the last minute before going public earlier this year.

UiPath is set to list on the New York Stock Exchange under the ticker symbol “PATH.”

Photo: SiliconANGLE