Rubrik IPO to Raise Up to $713M

What Investors Need to Know

Rubrik, a leading data protection and management solutions provider, has recently announced its plans for an initial public offering (IPO). According to reports, the company is aiming to raise up to $713 million in the offering. In this article, we will delve into the details of Rubrik’s IPO, its potential impact on the market, and what investors need to know.

Background Rubrik was founded in 2014 by Bipul Sinha, Arvind Nithrakashyap, and Piyush Mehta. The company’s mission is to simplify data protection and management for businesses. Rubrik’s flagship product, the Rubrik Cloud Data Management Platform, offers a single solution for backup, disaster recovery, archival, and copy data management. The company has seen significant growth in recent years, with revenue increasing from $102 million in 2019 to $213 million in 2020.

IPO Details Rubrik has filed a registration statement with the Securities and Exchange Commission (SEC) for its IPO. The company plans to offer 36 million shares of its Class A common stock, with an estimated price range of $13 to $15 per share. At the midpoint of the price range, Rubrik would raise approximately $540 million. However, underwriters have been granted an option to purchase an additional 5.4 million shares, which could bring the total offering size to $713 million.

Market Impact Rubrik’s IPO is expected to be a significant event in the technology sector. The company’s strong growth and innovative product offerings have attracted the attention of investors. Additionally, the IPO comes at a time when the tech market is experiencing a surge in IPO activity. Other notable tech companies that have recently gone public include Snowflake, Palantir Technologies, and Asana.

What Investors Need to Know Investors considering investing in Rubrik’s IPO should be aware of a few key factors. First, the company’s revenue growth rate has been impressive, but it is still not profitable. In 2020, Rubrik reported a net loss of $158.6 million. Additionally, the company’s customer base is still relatively small, with just over 2,500 customers as of December 31, 2020.

Another factor to consider is competition. Rubrik faces competition from established players in the data protection and management market, such as Dell Technologies, Commvault, and Veritas Technologies. However, Rubrik differentiates itself by offering a single solution for backup, disaster recovery, archival, and copy data management.

Conclusion Rubrik’s IPO is an exciting development for the technology sector and offers investors an opportunity to invest in a company with strong growth potential. However, investors should be aware of the company’s current lack of profitability and competition in the market. As more details emerge about the offering, investors will be able to make informed decisions about whether to invest in Rubrik’s shares.

Sources:

  • Rubrik Files for IPO, Aims to Raise Up to $713 Million (The Wall Street Journal)
  • Rubrik IPO: What You Need to Know (Seeking Alpha)
  • Rubrik: Simplifying Data Management for Modern Enterprises (Rubrik website)