Backed by Rubric, a data management software company MicrosoftIts IPO price is $32 per share, according to people familiar with the matter. It is beyond its intended scope.
The 10-year-old company planned to sell 23 million shares before listing on the New York Stock Exchange on Thursday and will trade under the ticker “RBRK”. The offering raised $752 million and valued the company at $5.6 billion.
The company said in a statement last week that the price of the deal is expected to be between $28 and $31 per share.
Rubric hit public markets during a historic downturn in venture capital-backed tech IPOs, particularly for companies that sell to enterprises. The IPO market has largely shut down in late 2021 as concerns about a deteriorating economy and rising interest rates have steered investors away from riskier assets.
Startups stay private for a long time, recoup their money and wait for better conditions. Even as interest rates stabilize and the broader tech market rebounds, private tech companies have been slow to exit.
Instant shopping cart Software provider Klaviyo went public in September, the first venture capital-backed tech deal in the US since 2021. Reddit The listing comes a day after the Nasdaq listing last month Astra Labswhich sells data center connectivity chips.
In its early days, Rubric sold perpetual licenses and created maintenance contracts for hardware that could take care of data storage functions like backup and compression. In recent years, the company has shifted to subscription cloud-based cybersecurity software. Enterprises can use the software to protect data in cloud applications and public clouds and prevent data loss in the event of ransomware attacks.
Rubrik now generates 91% of its revenue from subscriptions, up from 59% two years ago. Revenue grew less than 5% in the fiscal year ended Jan. 31, but annual recurring revenue from subscriptions grew 47%.
The company said nearly 100 customers contributed more than $1 million in subscription ARR through the end of the fiscal year. Clients include Barclays, Carhartt Bank and Home Depot.
“Our key revenue metric is subscription ARR,” Rubrik’s CFO Kiran Chaudhary said in a video presentation of the company’s IPO roadshow.
Rubrik’s losses, however, were mounting. The company reported a net loss of $354 million last fiscal year, compared to a net loss of about $278 million the year before.
Microsoft invested in Rubric in 2021 at a valuation of $4 billion. Venture capital firm Lightspeed, in which CEO Vipul Sinha was a partner, will get over 25% voting rights after the IPO. Sinha will hold 8 percent control.
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