Bipul Sinha, CEO, chairman and co-founder of Rubrik Inc., a Microsoft-backed cybersecurity software startup, kicked off the company’s IPO at the New York Stock Exchange (NYSE) in New York City, the United States, on April 25, 2024. City clock.
Brendan McDermid | Reuters
Shares of data management software maker Rubrik surged in its debut on the New York Stock Exchange on Thursday, the latest sign of public market investor interest in technology IPOs. On Wednesday, the Microsoft-backed company priced its IPO at $32 a share, above the expected range of $28 to $31 a share, and the stock opened at $38.60 a share.
By selling 23.5 million shares, the company raised $752 million, giving it a valuation of $5.6 billion. Rubrik stock trades under the symbol “RBRK.”
As central banks kept interest rates low, many technology companies emerged on the public markets in the 2010s. Concerns about economic weakness starting in late 2021 have led to waning investor interest in unprofitable companies. Since then, few young technology companies have been willing to try to go public. But that may be changing. Reddit and Astra LabsThe company that sells chips that connect data centers went public in March.
Rubrik, which was founded 10 years ago, reported a net loss of $354 million in its most recent fiscal year, compared with a loss of $278 million the year before. The company currently generates 91% of its revenue from subscriptions, up from 59% two years ago.
Microsoft invested in the company in 2021, and Rubrik co-founder and CEO Bipul Sinha has an 8% control stake. Sinha was previously a startup investor at Lightspeed Venture Partners, which held 25% of the voting rights.
Sinha said Rubrick could not control market conditions but could prepare for the listing.
“When we see market acceptance and we’re ready, we’ll go,” he said in an interview.
Ravi Mhatre, managing director at Lightspeed Venture Partners, said a company will decide on the timing of an IPO in the next six to eight weeks, depending in part on input from bankers. The sole investor in venture capital.
Investor input is also crucial.
“Bipul spent a lot of time with public market investors in 2023 and 2024,” said Mhatre, whose company invested about $362 million in Rubrik.
From these conversations, Sinha learned what investors would be interested in.
“People are looking for strong companies to go public that have the potential to be enduring businesses, have a moat in the market, have something unique in the market and clearly win in the market,” Sinha said. “Being public is The key is not publicity.”
This story is developing. Please check back for updates.
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