Cybersecurity software company Rubrik announced this week that it will seek a $5.4 billion valuation in its initial public offering as the stock market recovers and demand for security increases due to a rise in cyberattacks.
Rubrik said it will raise $713 million in an initial public offering scheduled for April by selling 23 million shares priced between $28 and $31 per share. The company provides data security solutions to more than 6,100 customers, including consumer electronics manufacturers Whirlpool, PepsiCo and Goldman Sachs, according to its website. Venture capitalist Vipul Sinha founded the company in 2013 and released its first product in 2016. According to reports, Microsoft’s investment in 2021 was valued at $4 billion.
In an interview with February Information Week, Rubrik CIO Ajay Sabhlok The company also said it is helping organizations address growing technical debt with increased adoption of generative AI tools. GenAI and the growing security threats posed by internal users and external attackers are top concerns among security experts.
“I think [GenAI] It will have to become part of everything we do, every tool, every process, and it will have to be reflected in our everyday designs and solutions,” he said.
IPOs of other tech companies suggest the market may be coming back to life. Last month, his Intel AI spinoff Astera Labs announced pricing for its IPO at $36 per share to raise more than $604 million. Walmart-backed digital promotions company Ibota is aiming for a $2.3 billion valuation in its IPO.
According to an IPO consulting firm DFIN, more than 33 operating companies raised $8 billion in the first quarter of 2024. “The first quarter ended on a spring thaw note with activity in the IPO pipeline and strong price performance,” said Craig Clay, president of global capital markets at DFIN. statement. “We expect green shoots to continue in the second quarter as successful public debuts like Reddit and Astera Labs boost investor confidence.”
Greg Sichenjia, a partner at securities law firm Sichenjia Los Ferens Carmel, said in an email interview that while he’s excited to see large companies pull off IPOs, he has some concerns about what the future holds for smaller companies. he said.
“Rubrik’s IPO is exciting and part of a recovery in IPOs, especially for large companies in the technology sector…with one caveat: While large companies are seeing a rebound in IPOs, small and medium-sized enterprises are still “We’re having a hard time getting an IPO,” he says.
“Also, AI seems to be a hot area right now, and these companies seem to be getting the most attention,” he added.