Rubrik Shares Rise In Debut After Pricing Above Projected Range

Shares of data security and management company Rubrik closed up about 16% in their first day trading publicly on Thursday, marking the latest large software debut in an IPO market that’s showing signs of resurgence after a long lull.

Palo Alto, California-based Rubrik priced its initial public offering at $32 a share on Wednesday, above the projected range of $28 to $31. The offering raised around $752 million for the company, and set an initial valuation around $5.6 billion. Shares are trading on the New York Stock Exchange under the ticker symbol RBRK.

Founded in 2014, Rubrik pitches itself as a provider of tools for organizations to secure their data across the cloud and recover from cyberattacks. The company’s IPO prospectus also plays up its AI expertise, stating that it can “apply artificial intelligence and machine learning directly to business data to understand emergent data security threats and deliver cyber recovery.”

Rubrik raised considerable funding as a private company, pulling in more than $550 million in known financings. Its largest venture shareholders include Lightspeed Venture Partners and Greylock Partners, both early-stage lead investors.

While Rubrik is growing briskly, it remains far from profitable. The company reported $538 million in revenue for its last fiscal year, which ended Jan. 31, up 42% from the prior fiscal year. However, the company’s net loss also widened, hitting $354 million in the just-ended fiscal year, up from $278 million in the previous year.

Strong post-offering performance from Rubrik could go a long way to bolster confidence in the tech IPO market. Last month saw big debuts from Reddit and Astera Labs, which have performed relatively well so far. Reddit is well below its peak, but shares remain above where they initially priced. Astera’s shares have roughly doubled from where they initially priced.