Following the catastrophe that was 2020, the new year brought fresh excitement for technology-based initial public offerings. Among the most hotly anticipated IPO is UiPath, an end-to-end automation service that “threatens” the traditional busywork model that makes even the biggest blue-chip firms less effective than they could be.
Underlining the UiPath IPO is an artificial intelligence platform that truly is intelligent. Through its Task Mining and Process Mining innovations, UiPath’s AI process analyzes the daily administrative tasks a corporation’s employees perform – the busywork. The AI also studies the inner functionalities of a company’s business applications, deciphering where backlogs and inefficiencies lie.
From there, UiPath essentially transitions into a 24/7 automated digital robot, handling the repetitive, time-consuming tasks that drag down performance metrics and just as critically, employee morale. The UiPath IPO isn’t just an investment in efficiencies like other AI platforms — it has the potential to overturn the business paradigm.
The UiPath IPO has the ability to help each component of a company – whether human or digital – reach its full potential.
When is the UiPath IPO Date?
In December 2020, UiPath filed confidential paperwork with the Securities and Exchange Commission (SEC) regarding a potential IPO. During a fundraising round in July 2020, UiPath CEO and Co-Founder Daniel Dines indicated the company could go public in the next 12 to 18 months.
Dines also suggested that the UiPath will go through when the market is ready. This suggests that a debut could be possible within the first half of this year.
While the pandemic has severely challenged the IPO market in 2020, many tech plays have stood out. For instance, AI and big data analytics firm Palantir Technologies (NYSE:PLTR) has gained nearly 247% since launching in the stock market.
UiPath Financial History
At the time of UiPath’s filing of paperwork with the SEC, the company “did not disclose its financial information nor did it specify how many shares would be offered.” However, the fundraising history truly demonstrates the popularity of the UiPath IPO.
According to CrunchBase.com, UiPath raised $750 million on Feb. 1, 2021 during a Series F funding round. The lead investors were Alkeon Capital and Coatue. This follows a $225 million raise on July 31, 2020 and a $568 million round on April 30, 2019.
Overall, UiPath raised just a hair shy of $2 billion. It’s set to become one of the most valuable New York City-based tech firms at the time of its Wall Street debut, according to CNBC.
While some tech firms enjoy robust support prior to their debut only to fizzle out later, the UiPath IPO may be one that deserves its heightened accolades. The underlying innovation could spark radically positive changes for multiple enterprises.
The AI market itself is poised to boom over the next several years. According to data from Grand View Research, the global AI market was $39.9 billion in 2019. At the time, the research firm projected that this sector will rise at a compound annual growth rate of 42.2% from 2020 to 2027. However, the need for enhanced operational efficiencies to bolster the bottom line could mean that the AI market exceeds some of the more aggressive projections.
What’s clear is that the leaders in the AI space will take home the lion’s share of this burgeoning market. With the ability to eliminate busywork and focus human talent on driving innovations, UiPath stands in a rarefied category. And the use of AI protocols can help eliminate clerical or administrative errors – little mistakes that can end up costing millions.
UiPath has a core relevancy with the healthcare system today. Even before the pandemic, overwhelming paperwork stymied our healthcare infrastructure. Now it’s possible through UiPath’s platform to resolve these critical issues and allow medical professionals to do what they do best – help their patients.
How to Buy UiPath IPO Stock
While many are familiar with the process of how to buy stocks, the concept of buying IPO stocks at the initial offering price – which is often far lower than the opening market price – is a more exclusive concept.
The not-so-great news is that buying IPOs at the initial offering price is almost always reserved for institutional investors. Basically, the underwriters of the IPO provide an incentive for high rollers to participate in the upcoming debut. Unless you have an “in,” it’s difficult to access shares at this favorable price.
Still, that doesn’t mean that no opportunity exists with buying the possible UiPath IPO on its first public market session. As you’ve seen with high-profile debuts like Palantir, the potential for AI-based tech firms is massive.
- Pick a brokerage.
Before you can buy shares of UiPath when and if it makes its debut, you must first pick a brokerage. Thanks to rising competition, many online brokerages offer standardized incentives, such as commission-free trading. Choosing from the best brokers comes down to your investing style and needs.
For example, if you desire convenience over anything else, you may wish to elect a mobile trading app. But if you’re in the investing game for the long haul, brokers that open the entirety of investing options, as well as educational material, may be the best fit.
- Decide how many shares you want.
The amount of shares you wish to purchase is a personal decision. However, you should note that the stock market conducts transactions in share count, not dollar amount.
To make the conversion, simply take the dollar amount you wish to invest and divide it by the market price of the target stock. If you’re interested, some brokers offer fractional share ownership. However, this is not a standardized feature among all investing platforms.
- Choose your order type.
Prior to executing your first trade, please note that stock market transactions are slightly different from other transactions, mostly due to the constantly fluctuating valuations during trading sessions. Here are the key terms and concepts to know:
• Bid: A bid is the maximum price a buyer is willing to pay for a stock. This will always be lower than the ask.
• Ask: On the flipside, the ask is the minimum price that a seller will accept. The ask will always be lower than the bid.
• Spread: The spread is the difference between the bid and ask price. Conceptually, investors make money by wagering that the price of the stock they buy will rise in value. On the opposite end of the aisle, market makers profit from a stock’s sale price (to you) and their acquisition price, or the bid-ask spread.
• Limit order: Limit orders execute at a price that you have specifically predetermined. The benefit is that they only transact at that exact price. However, the drawback is the target stock is not guaranteed to reach that price.
• Market order: Market orders execute at the next available price. Essentially, this means that you’re virtually guaranteed to execute a buy/sell order if placed during normal session hours. However, market orders are fulfilled at disadvantageous rates (i.e. buy on the ask, sell on the bid).
• Stop-loss order: Stop-loss orders are market orders in reverse that protect the dollar value of your portfolio. They exit you out of your position at a specified price or the next available price, whichever comes first. A worst-case scenario is a gap-down session, where the stop-loss order may fulfill at a devastatingly low price.
• Stop-limit order: Similarly, stop-limit orders are limit orders in reverse. They exit you from your position only at a specified price. Although they prevent the unknowns associated with the gap-down scenario above, the stock is not guaranteed to reach the stop-limit order price.
- Execute your trade.
Deciding which order type to use may come down to the volatility of the market. If trading is wild and you absolutely want to own the UiPath IPO, then a market order may be preferable. If you wish to control your investments tightly, the limit order is the way to go.
Best Online Brokers
Below is a list of brokers for your consideration.
Delivering AI Solutions That Matter
Although AI technologies have existed for several years, it’s only now that they present practical solutions for everyday problems. Out of this innovative space comes the UiPath IPO, an investment where the underlying business opens possibilities for enhanced productivity and most importantly, worker satisfaction.
UiPath isn’t just about aiding corporate America’s bottom line. Critical infrastructures, such as healthcare, are in desperate need of resolving backlogging challenges. With UiPath’s promising AI platform, this is one public debut you must put on your radar.