Rubrik stock pops 20% in NYSE debut after company prices IPO above range

  • 📰 CNBC
  • ⏱ Reading Time:
  • 59 sec. here
  • 10 min. at publisher
  • 📊 Quality Score:
  • News: 55%
  • Publisher: 72%

Breaking News: Technology News

Technology,Breaking News,IPO

Rubrik's shares appeared to be attractive to investors that have been starved for new business software names for years.

Rubrik priced its IPO at $32 a share, raising $752 million at a $5.6 billion valuation, above its expected range.Bipul Sinha, CEO, Chairman & Co-Founder of Rubrik Inc., the Microsoft backed cybersecurity software startup, rings the opening bell during his company’s IPO at the New York Stock Exchange in New York City, U.S., April 25, 2024.jumped in its New York Stock Exchange debut Thursday, the latest sign that public market investors are showing an appetite for tech IPOs.

Many technology companies appeared on public markets in the 2010s 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 young technology companies have been willing to try going public. But that could be changing.

Rubrik, 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 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.

Sinha said Rubrik isn't able to control market conditions but was able to prepare itself to go public.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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines