Rubrik’s highly anticipated IPO, which was oversubscribed 20 timesgenerated about $736 million as shares exceeded the initial price range that the Microsoft-backed technology company had targeted.
The cloud and data startup offered 23 million shares, all from the corporate, at $32 each, above the $28 to $31 range outlined in the corporate’s offering S-1 filing. This brings Rubrik’s valuation to $5.61 billion. As recently as 2021, it was value greater than $4 billion Investment from Microsoft.
Fifteen banks participated within the offering, with Goldman Sachs because the lead underwriter. Stock trading on the New York Stock Exchange is scheduled to start Thursday under the ticker symbol “RBRK.”
Rubrik is the most recent technology company to go public in 2024. Last week, shares of Ibotta, the Walmart-backed digital marketing company, rose 17% in its first day of trading, while social media platform Reddit rose 48% in March and chip company Astera Labs rose 72% last month.
Founded in 2013, Rubrik provides a platform that helps corporations manage and protect their data. More than 6,100 customers use Rubrik’s software, including Goldman Sachs, the Denver Broncos and law firm Baker & McKenzie. The startup had raised $554.3 million in funding. in accordance with Crunchbase, with investors including Lightspeed Ventures, Bain Capital Ventures and Greylock Partners. Lightspeed will retain 25.4% of the voting shares, while Greylock will hold 13%, in accordance with the corporate’s regulatory filings.
Rubrik reported net losses of $97.5 million for the three months ended Jan. 31, compared with about $86 million in losses in the course of the same period in 2023, while revenue fell 61% to $158.7 million US dollar rose.
Ibotta was profitable in 2023, reporting net income of $38 million. Reddit and Astera Labs were unprofitable for many of 2023, with each corporations reporting positive net income within the fourth quarter.
For Matt Kennedy, senior IPO strategist at Renaissance Capital, Rubrik’s IPO will likely be a giant test of whether there may be investor interest in fast-growing but unprofitable corporations.
“There are dozens of unprofitable tech unicorns waiting to go public. So if that goes well, I expect some of them to move forward,” Kennedy said Assets. “There is a lot of excitement about finally getting this high-growth technology company. But at the same time, investors will quickly withdraw their money if they don’t see a good result.”
