The NYSE Welcomes Rubrik with a 16% Spike in its Stock Price on Debut

The strong increase in shares of data management software vendor Rubrik after its Thursday New York Stock Exchange debut is the most recent proof that public market investors are showing interest in digital IPOs. The shares began trading at $38.60 after the Microsoft-backed business priced its initial public offering (IPO) at $32 per share on Wednesday, beyond its projected range of $28 to $31 per share. Rubrik ended Thursday’s trading up by 16% at $37.

It raised $752 million by selling 23.5 million shares, putting its capitalization at $5.6 billion. The ticker “RBRK” is used to identify shares of Rubrik.

A lot of technology businesses entered the public markets in 2010 because central banks kept lending rates low, Investor interest in unprofitable enterprises decreased in late 2021 due to concerns about a faltering economy. Since then, there hasn’t been much willingness among fledgling digital companies to attempt going public.

Rubrik, founded a decade ago, had a $354 million net loss in its most recent fiscal year, down from $278 million the year before. Subscriptions now generate 91% of the revenue, an increase of 59% from the last two years.

Microsoft invested in the company in 2021. The CEO and Co-founder of Rubrik, Bipul Sinha, owns 8% of the business. Lightspeed Venture Partners, where Sinha was formerly a startup investor, holds 25% of the voting power. Even though Rubrik does not influence the market’s health, Sinha claims that the company was nevertheless able to prepare for going public. “When we see the market is receptive and we are ready, we go,” he said at a press conference.

Ravi Mhatre, managing director of Lightspeed Venture Partners, said that as the only investor in Rubrik’s initial round of venture funding, a firm will determine the date of its initial public offering (IPO) six to eight weeks in advance, with some help from bankers and investors. “Bipul spent a lot of time with public market investors both in 2023 and then in 2024,” said Mhatre, whose firm invested some $362 million in Rubrik.