Shares of the data management software maker’s stock rubric rose in its debut on the New York Stock Exchange on Thursday, the latest sign of public market investor interest in technology IPOs. The stock opened at $38.60 per share. The Microsoft-backed company IPO priced at $32 per share on Wednesday, above the expected range of $28 to $31 per share.
By selling 23.5 million shares, the company raised $752 million, valuing it at $5.6 billion. Rubric stock trades under the symbol “RBRK”.
As central banks kept interest rates low, many technology companies emerged on the open market in the 2010s. Concerns about economic weakness beginning in late 2021 have dampened investor interest in nonprofits. Since then, few young tech companies have been willing to try to go public. But that can be changed. Reddit And Astra LabsThe company, which sells data center connectivity chips, went public in March.
Rubric, which was founded 10 years ago, reported a net loss of $354 million in its most recent fiscal year, compared with a loss of $278 million the year before. The company currently generates 91% of its revenue from subscriptions, up from 59% two years ago.
Microsoft invested in the company in 2021, with Rubric co-founder and CEO Vipul Sinha owning a controlling 8%. Sinha was previously a startup investor in Lightspeed Venture Partners, which held 25% of the voting rights.
Sinha said Rubrik could not control the market situation but was able to prepare for the listing.
“When we see market acceptance and we are ready, we will go,” he said in an interview.
Ravi Mathre, managing director at Lightspeed Venture Partners, said a company would schedule an IPO in the next six to eight weeks, depending on input from bankers. The company was the sole investor in Rubrik’s first round of venture capital.
Investor input is also important.
“Bipul has spent a lot of time with public market investors in 2023 and 2024,” said Mathre, whose company has invested about $362 million in Rubri.
From these conversations, Sinha learned what investors would be interested in.
“People are looking for strong companies to go public that have sustainable business potential, have a niche in the market, have something unique in the market and can clearly win the market,” Sinha said, adding, “Going public is not about hype.”
This story is developing. Please check back for updates.
