Microsoft-Backed Rubrik Set to Launch a $713 Million IPO Amidst Market Rebound

Key Points

• Rubrik, supported by Microsoft Corp (MSFT), aims to raise up to $713 million in an upcoming IPO, offering 23 million shares priced between $28 and $31.
• The IPO is set against a backdrop of a rejuvenating U.S. IPO market, with Rubrik potentially reaching a valuation of around $5.4 billion.
• Rubrik is currently cooperating with a U.S. fraud investigation and has reported significant financial growth alongside substantial losses.

In this news

In a significant move within the cybersecurity sector, Rubrik, a software firm backed by Microsoft Corp (MSFT), is preparing to launch an Initial Public Offering (IPO) aiming to raise as much as $713 million. The Palo Alto-based company plans to offer 23 million shares, with prices ranging from $28 to $31 each. This pricing positions Rubrik at a potential valuation of approximately $5.4 billion, contingent on prevailing market conditions. The IPO market in the U.S. is witnessing a resurgence, with companies like Reddit and Astera Labs having recently gone public successfully, signaling a favorable environment for Rubrik's entry.

Rubrik's financial performance reveals a 47% growth in subscription annual recurring revenue, although the company reported a substantial loss of $354 million on revenue of $628 million for the year ending January 31. The company is also navigating a U.S. fraud investigation involving a former employee, but has stated its cooperation with the authorities. Leading financial institutions such as Goldman Sachs, Barclays, Citigroup, and Wells Fargo are managing the IPO, with plans to list the shares on the New York Stock Exchange under the ticker RBRK.

The IPO not only marks a pivotal step for Rubrik in terms of growth and market presence but also highlights the increasing investor confidence in technology and cybersecurity ventures, particularly those associated with industry giants like Microsoft (MSFT). The outcome of this IPO could influence similar future endeavors in the tech sector, especially under the shadow of recent market recoveries.