FOLLOW US

Venture-backed data security firm Rubrik Inc. has announced plans for a $679 million initial public offering, seeking to ride the wave of renewed interest in technology stocks.

Rubrik, based in Palo Alto, California, is advised by Cooley LLP, while underwriters' counsel is being handled by Latham & Watkins LLP. The company intends to offer 23 million shares priced between $28 and $31 each, aiming to raise $678.5 million at the midpoint of the price range. Trading under the symbol RBRK on the New York Stock Exchange, the IPO is expected to launch the week of April 22.

Palo Alto $679M IPO : Soaring Valuation and Advanced Tech

At the midpoint of the proposed price range, Rubrik's valuation could reach approximately $5.1 billion, taking into account the company's outstanding shares. The firm offers data protection services to government organizations and large enterprises, deploying artificial intelligence and machine learning to identify and tackle emerging threats.

Rubrik CEO Bipul Sinha emphasized the company's ambition in a letter to investors: "Our goal is to lead the data security market, which we believe is the future of cybersecurity."

Palo Alto $679M IPO : Growing Revenues and Esteemed Clients

Rubrik's financial disclosures reveal significant growth, yet profitability remains elusive. The company reported 6,100 customers and $627.9 million in revenue for the fiscal year ending January 31, 2024, compared to 5,000 customers and nearly $600 million in the previous fiscal year.

The firm boasts a prestigious clientele, including The Home Depot, PepsiCo, and the Denver Broncos, as well as several major Wall Street banks and technology companies.

In collaboration with Microsoft Corp., Rubrik plans to invest $220 million over the next decade in Microsoft's Azure cloud computing platform.

IPO Surge and Dual-Class Stock Structure

Rubrik's IPO announcement follows a recent surge in tech listings, with social media platform Reddit Inc. and AI semiconductor maker Astera Labs Inc. both raising significant funds through their initial offerings.

The company will offer public Class A shares with one vote each, while reserving Class B shares with 10 votes each for existing investors such as Lightspeed Venture Partners, Greylock Partners, and CEO Sinha.

Goldman Sachs & Co. LLC, Barclays Capital Inc., and several other leading investment banks are serving as underwriters for Rubrik's public offering.

Cooley LLP is representing Rubrik, with a team led by partners Jon Avina, Calise Cheng, and Milson Yu. Latham & Watkins LLP is advising the underwriters, led by Rick Kline and Sarah Axtell.