Rubrik Inc. securities rose in price by 25% during the trading debut after this startup specializing in the development of solutions for cloud security and data protection, backed by Microsoft, was able to raise $752 million in the initial public offering (IPO) of shares.
On Thursday, April 25, the price of one share of the mentioned company reached $38.07. The startup conducted an IPO for $32 per security, which is higher than the average market level. The company also increased the number of shares to 23.5 million.
According to the results of trading, the market value of Rubrik was fixed at $6.7 billion. Taking into account stock options and restricted shares units, the fully diluted valuation of the startup is approaching $8 billion.
Rubrik provides data protection for its corporate customers across enterprise, cloud, and software-as-a-service apps. The mentioned IPO was the second sizable US listing by an enterprise software startup in the past two years.
Rubrik was founded in 2013. Three years later, the startup presented its first product. Currently, the company’s clients number more than 6,100 different organizations and institutions, including, among others, Goldman Sachs Group Inc., Barclays Plc, and Citigroup Inc. The startup also provides services to governments and universities. Moreover, the company’s clients include Home Depot Inc., PepsiCo Inc., Illumina Inc., Fiserv Inc., and the Denver Broncos of the National Football League.
Microsoft invested in the startup in 2021 as part of a funding round, during which the startup was valued at $4 billion. PitchBook data indicates that as of today, the company has been able to raise $1.18 billion. In addition to Microsoft, the startup’s sponsors are Bain Capital Ventures, Lightspeed Venture Partners, Greylock Partners, and Khosla Ventures.
Bipul Sinha, Chief Executive Officer and Chairman of the Board of Rubrik, who is also one of the co-founders of the company, currently owns 7.6% of Class B shares. Arvind Nithrakashyap, co-founder and Chief Technology Officer of the startup owns 6.7% of the securities.
As part of its collaboration with Microsoft, Rubrik has committed to spend $220 million over 10 years on Azure, the tech giant’s cloud computing platform. The startup will use the mentioned platform for its data security solutions. The company also intends to preferentially offer its customers public cloud functionality for Azure.
For the fiscal year that ended on January 31, the startup recorded a net loss of $354 million. Also during the mentioned period, the company recorded a negative free cash flow of $24.5 million. At the same time, the startup’s annual subscription revenue increased by 47%.
The offer was led by Citigroup, Wells Fargo & Co., Goldman Sachs, and Barclays. The startup’s shares are traded under the symbol RBRK on the New York Stock Exchange.
Bipul Sinha says that people are looking for strong companies to go public. In this case, it means firms that have the potential to become a sustainable business. Also, such companies should offer the market something unique and clearly advantageous. According to Bipul Sinha, staying public is the key, not going public.
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