The long-awaited IPO Rubric, was oversubscribed 20 timesbrought in about $736 million as shares topped the initial price range set by the Microsoft-backed tech firm.
The cloud technology and data startup offered 23 million shares, all owned by the company, at $32 each, above the $28 to $31 range in the company’s filing. filing an S-1 application. That puts Rubrik’s valuation at $5.61 billion. Back in 2021, it was worth over $4 billion after investment from Microsoft.
Fifteen banks worked on the offering, with Goldman Sachs serving as the lead underwriter. The shares will begin trading on the New York Stock Exchange on Thursday under the ticker symbol “RBRK.”
Rubrik is the latest technology company to go public in 2024. Last week, shares of Ibotta, a digital marketing company backed by Walmart, rose 17% on its first day of trading, while social media platform Reddit rose 48% in March and chip company Astera Labs shares rose by 72%.
Founded in 2013, Rubrik provides a platform that helps businesses manage and protect their data. Rubrik’s software is used by more than 6,100 clients, including Goldman Sachs, the Denver Broncos and the law firm Baker & McKenzie. The startup has raised $554.3 million in funding. according to Crunchbasewith investors including Lightspeed Ventures, Bain Capital Ventures and Greylock Partners. According to company regulatory filings, Lightspeed will retain 25.4% of the voting shares and Greylock will retain 13%.
Rubrik reported a net loss of $97.5 million for the three months ended Jan. 31, compared with an estimated $86 million loss for the same period in 2023, while revenue rose 61% to $158.7 million.
Ibotta was profitable in 2023, reporting net income of $38 million. Reddit and Astera Labs were unprofitable for almost all of 2023, with both companies reporting positive net income in the fourth quarter.
For Matt Kennedy, senior IPO strategist at Renaissance Capital, the Rubric IPO will be a major test of whether investors have an appetite for fast-growing but unprofitable companies.
“There are dozens of money-losing tech unicorns waiting to go public. So if all goes well, I expect some of them to move forward,” Kennedy said. Luck. “There is some excitement that this fast-growing technology company is finally here. But at the same time, investors will quickly withdraw their money if they don’t see a good result.”