Microsoft-backed Rubrik aims to raise as much as $713 million in IPO, says report

Rubrik is looking to sell 23 million shares priced between $28 and $31 per share. At the top end of the range, the company would be valued at around $5.4 billion, though the source cautioned that the plans were subject to market conditions and could change.

The source, who spoke on condition of anonymity because the discussions are confidential, said the Palo Alto, California-based Rubrik is planning to sell 23 million shares priced between $28 and $31 per share.

At the upper end of the range, Rubrik would be valued at about $5.4 billion, the source added, cautioning the company’s plans are subject to market conditions and could change.

Rubrik did not immediately respond to a request for comment.

The planned IPO comes as the US market for new stock offerings shows signs of recovery after a slowdown in 2022 and 2023. Other tech companies like Reddit and Astera Labs have recently gone public, paving the way for more firms to follow suit.

Several companies, including Cato Networks and Synechron, have kicked off preparations to go public following the successful stock market flotations of social media platform Reddit and semiconductor connectivity firm Astera Labs.

Rubrik, founded in 2014, provides cloud-based ransomware protection and data backup software. It serves over 5,000 business customers, including tech giant Nvidia and retailer Home Depot.

According to Rubrik’s IPO filing, its subscription annual recurring revenue grew 47% at the end of January compared to a year earlier. The company also disclosed a loss of $354 million on revenue of $628 million for the 12 months ending January 31, compared with a loss of $278 million on revenue of $600 million a year earlier.

Alongside its plans to go public, Rubrik is also handling a US fraud investigation into one of its former employees, who worked for Rubrik’s sales division. According to a Reuters report from February, the US Department of Justice launched the probe in October 2023 and is looking into whether the former employee diverted funds paid by the US government for 110 contracts with Rubrik into an operating entity he had created.

Rubrik’s IPO will be led by Goldman Sachs, Barclays, Citigroup, and Wells Fargo. The company plans to list its shares on the New York Stock Exchange under the ticker RBRK.

(With Inputs from Reuters)

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Published: 15 Apr 2024, 07:42 AM IST