Influencer Editorial Team
Rubrik Inc., a cloud and data security startup supported by Microsoft Corp., has finalized its initial public offering (IPO) above the expected range, raising a total of $752 million.
Rubrik: Microsoft-Backed Startup Prices IPO at $32 per Share to Raise $752m
Originally planning to sell 23 million shares within the $28 to $31 range, Rubrik instead opted to sell them for $32 each, according to a statement. Additionally, the company added 500,000 shares to the IPO at a later stage, as per a filing with the US Securities and Exchange Commission.
At the IPO price, Rubrik would boast a market value of roughly $5.6 billion, based on the outstanding shares listed in its filings. When factoring in stock options and restricted share units, the company’s fully diluted valuation surpasses $6.6 billion.
Rubrik’s offering attracted about 20 times the number of orders as available shares, with considerations to potentially sell them at $34 apiece, as per earlier reports by Bloomberg News.
The company, specializing in securing corporate data across enterprise, cloud, and software-as-a-service applications, marks only the second sizable US IPO by an enterprise software startup in the past two years. The recent IPO by Klaviyo Inc., a marketing and data automation provider backed by Shopify Inc., ended a dry spell in September with a $659 million offering.
Rubrik’s IPO comes amidst a surge in technology IPOs in 2024, including Reddit Inc., Astera Labs Inc., and Ibotta Inc. AI-related investments have garnered significant attention, with Reddit’s IPO success being attributed to revenue from licensing data for AI model training. Rubrik, though yet to turn a profit, stands to benefit from this trend, especially after a decline in software sector contract spending.
Founded in 2013, Rubrik boasts over 6,100 customers, including prominent entities like Goldman Sachs Group Inc., Barclays Plc, and Citigroup Inc. Its client base spans governments, universities, and a diverse array of companies such as Home Depot Inc., PepsiCo Inc., Illumina Inc., and Fiserv Inc., among others.
Microsoft’s equity investment in Rubrik in 2021, alongside backers like Bain Capital Ventures, Lightspeed Venture Partners, and Greylock Partners, underscores confidence in the startup. Through its partnership with Microsoft, Rubrik has committed to utilizing Azure, Microsoft’s cloud computing platform, for its data security solutions.
Rubrik recorded a $354 million net loss in the year ended January 31, alongside $24.5 million in negative free cash flow, despite a 47% growth in subscription annual recurring revenue.
Amidst a strong market for IPOs in 2024, Rubrik’s offering, led by Goldman Sachs, Barclays, Citigroup, and Wells Fargo & Co., is expected to commence trading on the New York Stock Exchange under the symbol RBRK.
