Rubrik Eyes Massive $5.4B IPO Value as Cybersecurity Booms

Cybersecurity software firm Rubrik this week said it would seek a $5.4 billion valuation for its initial public offering (IPO) as equity markets rebound and increasing cyberattacks are creating more security demand.

Rubrik says it will raise $713 million selling 23 million shares priced between $28 and $31 per share – in an IPO that the company expects in April. The company provides data security solutions to more than 6,100 customers, including appliance maker Whirlpool, PepsiCo, and Goldman Sachs, according to its website. Venture capitalist Bipul Sinha founded the company in 2013 and released its first product in 2016. It was valued at $4 billion when Microsoft invested in 2021, according to reports.

In an interview with InformationWeek in February, Rubrik CIO Ajay Sabhlok said the company was also helping organizations deal with mounting technical debt with a rise in generative AI tool deployments. GenAI and the heightened security threats from both inside users and from outside threat actors, is a top concern among security experts.

“I think [GenAI] will become part of everything we do -- every tool, every single process and we will have to back that into our day-to-day designs and solutions,” he said.

Other tech firms’ IPOs have shown the market may be making a comeback. Last month Intel AI spinoff Astera Labs announced pricing of its IPO at $36 per share to raise more than $604 million. Walmart-backed Ibota, a digital promotions company, will seek a $2.3 billion valuation with its IPO.

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According to IPO consultant firm DFIN, more than 33 operating companies raised $8 billion in the first quarter of 2024. “Q1 closed with a bit of a spring thaw caused by IPO pipeline movement and positive price performance,” Craig Clay, DFIN’s president of global capital markets, said in a statement. “Green shoots are expected to continue in Q2 as investor confidence increases from successful public debuts like Reddit and Astera Labs.”

With excitement for bigger companies landing IPO success, there's some worry about how smaller companies will fare, says Greg Sichenzia, a partner with securities law firm Sichenzia Ross Ference Carmel, via an email interview.

"The Rubrik IPO is exciting and it's part of the rebound of IPOs for larger companies, especially in the tech space ... There is one caveat: While bigger companies are seeing the IPO rebound, smaller companies still struggle to get IPOs done," he says.

He adds, "Also it does appear AI is the hot sector right now and these companies are getting the most attention."

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