Cybersecurity software company Rubrik counts Microsoft among its prominent investors and is aiming to raise up to $713 million in an initial public offering, according to people familiar with the matter.
Palo Alto, Calif.-based Rubrik plans to sell 23 million shares at prices between $28 and $31 a share, the people said, asking not to be identified because the discussions are confidential.
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The people added that at the high end of the range, Rubrik would be valued at about $5.4 billion, and cautioned that the company's plans are subject to market conditions and could change.
Rubrik did not immediately respond to a request for comment.
Rubrik's plan to go public comes as the U.S. IPO market is showing early signs of recovery after a freeze on stock market listings for most of 2022 and 2023.
Following the successful stock market rises of social media platform Reddit and semiconductor connectivity company Astera Labs, several companies, including Cato Networks and Synechron, have begun preparing to go public.
Founded in 2014 by venture capitalist Bipul Sinha, Rubrik makes cloud-based ransomware protection and data backup software. The company serves more than 5,000 of his enterprise customers, including Nvidia Corp and Home Depot.
Rubrik's annual subscription recurring revenue was up 47% year over year at the end of January, according to its IPO filing. Sales for the 12 months ended January 31 were $628 million, compared with a loss of $278 million on sales of $600 million a year earlier. It was also revealed that there was a loss.
Alongside its plans to go public, Rubrik is also facing a U.S. fraud investigation into one of its former employees.
The investigation, which began in October 2023 and is being conducted by the U.S. Department of Justice, reveals that a former employee used funds paid by the U.S. government for 110 Rubrik contracts to run a business he founded. Reuters reported that an investigation is underway to determine whether the drug was used in the body. February.
Rubrik said in its IPO filing that it is cooperating with this ongoing investigation.
Goldman Sachs, Barclays, Citigroup and Wells Fargo are the lead underwriters for Rubrik's IPO. The company plans to list its shares on the New York Stock Exchange under the ticker RBRK.
