Rubrik, a cybersecurity software company with investments from notable firms like Microsoft, intends to raise up to $713 million through its initial public offering (IPO), according to a person familiar with the matter.
Based in Palo Alto, California, Rubrik plans to offer 23 million shares priced between $28 and $31 each, the insider revealed, requesting anonymity due to the confidential nature of the discussions.
According to the source, if Rubrik sells shares at the higher end of the range, its valuation would reach approximately $5.4 billion. However, the source cautioned that the company’s intentions are dependent on market conditions and may be subject to change.
Rubrik’s decision to go public coincides with a resurgence in the U.S. IPO market, which saw a slowdown in 2022 and 2023.
With successful IPOs like Reddit and Astera Labs, companies like Cato Networks and Synechron are also gearing up to enter the stock market.
Founded by venture capitalist Bipul Sinha in 2014, Rubrik specializes in cloud-based ransomware protection and data backup software. Its clientele includes over 5,000 business customers, such as Nvidia Corp and Home Depot.
In its IPO filing, Rubrik reported a 47% growth in subscription annual recurring revenue by the end of January compared to the previous year. However, it also disclosed a loss of $354 million in revenue of $628 million for the 12 months ending Jan. 31. This compares with a loss of $278 million in revenue of $600 million in the preceding year.
Amidst preparations for its IPO, Rubrik is also managing a U.S. fraud investigation related to a former employee. The investigation, initiated in October 2023 by the U.S. Department of Justice, focuses on whether the former employee redirected funds from 110 contracts with Rubrik, paid by the U.S. government, into an operating entity he had established, Reuters reported in February.
Rubrik stated in its IPO filing that it is actively cooperating with the ongoing investigation.
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 under the ticker symbol RBRK.
