The highly anticipated IPO of Rubrik, which was oversubscribed 20 timesgenerated some $736 million, with shares surpassing the initial price range sought by the Microsoft-supported technology company.
The cloud and data startup offered 23 million shares, all from the company, at $32 each, above the $28 to $31 range cited in the company’s report. S-1 filing. This brings Rubrik’s valuation to $5.61 billion. As recently as 2021, it was valued at over $4 billion after a Microsoft investment.
Fifteen banks worked on the offer, with Goldman Sachs the main subscriber. The shares are expected to begin trading on the New York Stock Exchange on Thursday under the symbol “RRBRK.”
Rubrik is the latest technology company to go public in 2024. Last week, shares of Ibotta, the digital marketing company backed by Walmart, increased by 17% on their first day of trading, while social media platform Reddit gained 48% in March and chip company Astera Labs soared 72% last month.
Founded in 2013, Rubrik offers a platform that helps businesses manage and protect their data. More than 6,100 clients use Rubrik software, including Goldman Sachs, the Denver Broncos and law firm Baker & McKenzie. The startup had raised $554.3 million in funding, according to 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%, according to the company’s regulatory filing.
Rubrik reported $97.5 million in net losses for the quarter ended Jan. 31, compared with about $86 million in losses for the same period in 2023, while revenue soared 61% to $158.7 million. dollars.
Ibotta was profitable in 2023, with a net profit of $38 million. Reddit and Astera Labs were unprofitable for most of 2023, with both companies reporting positive net income in the fourth quarter.
Matt Kennedy, senior IPO strategist at Renaissance Capital, said Rubrik’s IPO will be a major test of whether there is investor appetite for fast-growing but unprofitable companies.
“There are dozens of unprofitable tech unicorns waiting to go public. So if all goes well, I would expect a number of them to move forward,” Kennedy said. Fortune. “There is some excitement about finally acquiring this high-growth technology company. But at the same time, investors will not hesitate to withdraw their money if they do not see good results.”
