Cybersecurity Firm Rubrik Plans IPO to Raise Up to $713 Million

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Rubrik, is preparing for an initial public offering (IPO) with a goal of raising $713 million.
Rubrik, is preparing for an initial public offering (IPO) with a goal of raising $713 million.

According to a knowledgeable source, cybersecurity software firm Rubrik, backed by notable investor Microsoft, is gearing up for its initial public offering (IPO), aiming to raise to $713 million. 

The Palo Alto-based company intends to sell 23 million shares priced between $28 and $31 per share.

Valuation and Market Conditions:

At the upper end of the pricing range, Rubrik would command a valuation of approximately $5.4 billion. 

However, these plans are contingent upon prevailing market conditions and are subject to change. Rubrik has not yet provided an official comment on these developments.

IPO Amidst Market Rebound:

Rubrik’s IPO aspirations come amidst a burgeoning rebound in the U.S. IPO market, which saw a freeze in activity during much of 2022 and 2023. 

Following successful IPOs of companies like Reddit and Astera Labs, several firms, including Cato Networks and Synechron, are preparing to go public.

Company Background and Offerings:

Founded in 2014 by incident capitalist Bipul Sinha, Rubrik specializes in cloud-based ransomware protection and data backup software. 

With a clientele of over 5,000 businesses, including notable names like Nvidia Corp and Home Depot, Rubrik has reported significant growth in its subscription annual recurring revenue, which surged by 47% year-over-year at the end of January.

Financial Performance and Losses:

Despite robust revenue growth, Rubrik disclosed a loss of $354 million in revenue of $628 million for the 12 months ending January 31, compared to a loss of $278 million in revenue of $600 million in the previous year.

Handling of Fraud Investigation:

In addition to its IPO preparations, Rubrik is contending with a U.S. fraud investigation involving one of its former employees. 

The probe, initiated in October 2023 by the U.S. Department of Justice, focuses on the potential diversion of funds from government contracts. Rubrik stated its cooperation with the ongoing investigation in its IPO filing.

Lead Underwriters and Listing Plans:

Goldman Sachs, Barclays, Citigroup, and Wells Fargo are the lead underwriters for Rubrik’s IPO. 

The company intends to list its shares on the New York Stock Exchange beneath the RBRK ticker.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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