$RBRK - Laying out the Rubrik for youNYSE:RBRK - Laying out the Rubrik for you
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Rubrik
Rubrik Stock Surges 20% in NYSE DebutOn Thursday, Shares of data management software maker Rubrik (NYSE: NYSE:RBRK ) surged 20% in its New York Stock Exchange debut, the latest sign that public market investors are showing an appetite for tech IPOs. The stock opened at $38.60 per share, after the Microsoft-backed company priced its IPO at $32 a share on Wednesday, above its expected target of $28 to $31 per share.
In selling 23.5 million shares, it raised $752 million, leaving it with a valuation of $5.6 billion. Rubrik shares are trading under the ticker “RBRK.”
In the last decades, Many technology companies appeared on public markets as central banks kept interest rates low. Worries about a weakening economy starting in late 2021 led investors to become less interested in unprofitable companies. Since then, few start-up technology companies have been willing to try going public. But that could be changing. Reddit
and Astera Labs which sells data center connectivity chips, went public in March.
Rubrik ( NYSE:RBRK ), founded a decade ago, reported a $354 million net loss in the latest fiscal year, compared with a $278 million loss in the year prior. The company now generates 91% of its revenue from subscriptions, up from 59% two years ago.
Microsoft also invested in the company in 2021. Rubrik’s co-founder and CEO, Bipul Sinha, has 8% control. Lightspeed Venture Partners, where Sinha was previously a startup investor, has 25% of the voting power.
A company will decide on the timing for its IPO six to eight weeks ahead, relying partly on input from bankers, said Ravi Mhatre, managing director at Lightspeed Venture Partners, which was the sole investor in Rubrik’s first round of venture capital.
Microsoft-Backed Rubrik Eyes $713 Mln IPOIn a move signaling robust confidence in the cybersecurity sector, Rubrik, a Palo Alto-based firm backed by Microsoft ( NASDAQ:MSFT ), is set to embark on an initial public offering (IPO), aiming to raise up to $713 million, according to sources familiar with the matter.
The cybersecurity software company is planning to offer 23 million shares priced between $28 and $31 each, potentially valuing Rubrik at approximately $5.4 billion at the upper end of the range. This IPO initiative underscores Rubrik's strategic positioning amidst a burgeoning demand for cloud-based ransomware protection and data-backup solutions.
Rubrik's planned IPO arrives against the backdrop of a revitalized U.S. IPO market, signaling a resurgence in investor appetite following a period of subdued activity. Notable successful listings, including those of Reddit and Astera Labs, have set the stage for a wave of upcoming public offerings, with companies like Cato Networks and Synechron poised to join the fray.
Founded in 2014 by venture capitalist Bipul Sinha, Rubrik has established itself as a leader in the cybersecurity space, serving over 5,000 business clients, including industry giants like Nvidia Corp and Home Depot. The company's robust growth trajectory is evidenced by a 47% increase in subscription annual recurring revenue compared to the previous year.
However, amid its IPO preparations, Rubrik finds itself entangled in a U.S. fraud investigation related to a former employee. The U.S. Department of Justice is probing allegations that the ex-employee diverted funds from 110 contracts with Rubrik into a personal operating entity, a development that adds a layer of complexity to Rubrik's IPO journey.
Despite the regulatory scrutiny, Rubrik's IPO aspirations underscore the market's bullish outlook on cybersecurity solutions. With the backing of industry stalwarts like Microsoft and a track record of delivering cutting-edge cloud-based security services, Rubrik's public debut promises to be a significant event in the cybersecurity landscape.
As Rubrik charts its course toward the public markets, investors will be keenly watching how the company navigates the IPO process amidst regulatory challenges and capitalizes on the growing demand for cybersecurity solutions in an increasingly digitized world.
