Microsoft-allied Rubrik could be valued at more than $5 billion after IPO

By Tomi Kilgore

Cybersecurity company sets IPO terms, expects to raise up to $713 million

Data security company Rubrik Inc. has set terms for its initial public offering, which puts it on course to be valued are more than $5 billion.

The California-based company said in a filing Tuesday that it plans to sell 23 million shares in the IPO, which is expected to price between $28 and $31. That means the company could raise between $644 million and $713 million.

And with a total of 175.4 million shares expected to be outstanding after the IPO, the expected pricing would imply a market capitalization of between $4.91 billion and $5.44 billion.

There will be two classes of stock. The Class A shares, which will entitle holders to one vote, are expected to list on the New York Stock Exchange, under the ticker symbol "RBRK." The Class B shares will entitle holders to have 20 votes.

There are 15 underwriters for the IPO, led by Goldman Sachs, Barclays, Citigroup and Wells Fargo Securities.

The IPO comes at a time of increasing investor interest in new shares, as the Renaissance IPO ETF IPO has gained 7% over the past three months while the S&P 500 index SPX has tacked on 6%.

Read: Rubrik files for IPO as market continues to display signs of unfreezing.

Rubrik has touted its Microsoft Corp. (MSFT) alliance and their "mutual go-to-market obligations." As part of the alliance, Rubrik said it has committed to spend $220 million over the course of up to 10 years for the use of Microsoft Azure cloud services.

Rubrik has recorded $627.9 million in revenue during the year ended Jan. 31, up 4.7% from $599.8 million a year ago. But losses have increased much more, as they have swelled 27.5% to $354.2 million from $277.7 million.

-Tomi Kilgore

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04-16-24 0949ET

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