Rubrik Stock Surges 20% in NYSE Debut

On Thursday, Shares of data management software maker Rubrik (NYSE: RBRK ) surged 20% in its New York Stock Exchange debut, the latest sign that public market investors are showing an appetite for tech IPOs. The stock opened at $38.60 per share, after the Microsoft-backed company priced its IPO at $32 a share on Wednesday, above its expected target of $28 to $31 per share.

In selling 23.5 million shares, it raised $752 million, leaving it with a valuation of $5.6 billion. Rubrik shares are trading under the ticker “RBRK.”

In the last decades, Many technology companies appeared on public markets as central banks kept interest rates low. Worries about a weakening economy starting in late 2021 led investors to become less interested in unprofitable companies. Since then, few start-up technology companies have been willing to try going public. But that could be changing. Reddit
and Astera Labs which sells data center connectivity chips, went public in March.

Rubrik ( RBRK ), founded a decade ago, reported a $354 million net loss in the latest fiscal year, compared with a $278 million loss in the year prior. The company now generates 91% of its revenue from subscriptions, up from 59% two years ago.

Microsoft also invested in the company in 2021. Rubrik’s co-founder and CEO, Bipul Sinha, has 8% control. Lightspeed Venture Partners, where Sinha was previously a startup investor, has 25% of the voting power.

A company will decide on the timing for its IPO six to eight weeks ahead, relying partly on input from bankers, said Ravi Mhatre, managing director at Lightspeed Venture Partners, which was the sole investor in Rubrik’s first round of venture capital.