Rubrik Prices IPO Above Target, Raises $752 Million Amid Resurgent U.S. Market

Cybersecurity Software: Rubrik, a cybersecurity software startup, has successfully priced its initial public offering (IPO) at $32 per share, surpassing its indicated price range. With an upsized IPO, the company raised $752 million by selling 23.5 million shares, confirming earlier reports about the offering details. This pricing values Rubrik at approximately $5.6 billion, based on outstanding shares listed in its filing with the U.S. Securities and Exchange Commission.

The decision to price above the initial target range reflects strong investor demand and confidence in Rubrik's potential. This IPO comes at a time when the U.S. IPO market is experiencing a resurgence, following a freeze in stock market launches during most of 2022 and 2023. Recent successful IPOs, such as those of Reddit and Astera Labs, have encouraged other companies like Cato Networks and Synechron to prepare for their own public offerings.

Founded in 2014 by venture capitalist Bipul Sinha, Rubrik specializes in cloud-based ransomware protection and data backup software. Its clientele includes over 6,000 business customers, including notable names like Nvidia and Home Depot. The company has reported significant growth in its subscription annual recurring revenue, which increased by 47 per cent year-over-year as of the end of January.

However, Rubrik also disclosed a loss of $354 million on revenue of $628 million for the 12 months ended Jan. 31, compared to a loss of $278 million on revenue of $600 million a year earlier. Despite these losses, investors seem optimistic about Rubrik's future prospects in the cybersecurity market.

Rubrik is set to list its shares on the New York Stock Exchange under the ticker symbol "RBRK" on Thursday. Goldman Sachs, Barclays, Citigroup, and Wells Fargo are serving as the lead underwriters for the offering.

With Reuters Input