Rubrik, a cloud-native data security/SaaS technology business, began its IPO roadshow earlier this week and plans to begin trading as a public company this month.
Rubrik IPO – 5 things you need to know:
- RBRK IPO date — Rubrik is scheduled to begin trading on the New York Stock Exchange on Thursday, April 25th under the ticker symbol “RBRK.” Generally, stocks listed on the stock market begin trading between 10:00 a.m. and 2:00 p.m. Eastern Standard Time.
- Number of shares issued — The company plans to issue 23 million shares. At the same time, RBRK plans to issue senior bonds worth $450 million. There are also 15% or about 3.45 million greenshoes.
- evaluation – RBRK's IPO price range is $28 to $31 per share, implying a market cap in the range of $5.3 billion to $5.87 billion.
- Revenue collected — The company aims to raise approximately $713 million in the IPO.
- Underwriter — Goldman Sachs is the lead manager for Rubrik's IPO. Barclays, Citigroup, Wells Fargo and 11 other financial institutions will also serve as underwriters.
Analysts said in a note to clients this week that they see opportunities for the company around generative artificial intelligence.
“Enterprise-wide adoption of Gen AI increases the need for companies to be careful not to expose sensitive or proprietary data to LLMs and protect Gen AI data from more sophisticated cyber-attacks,” the analyst said. states. “Long-term operating model: RBRK's long-term business model is very typical for a SaaS company and requires RBRK to travel the farthest distance as far as sales and marketing leverage is concerned.”
Further evaluating the business, analysts said Rubrik's total revenue was $628 million during the fiscal year ending January 2024, suggesting year-over-year growth of approximately 4.5%.
Analysts believe Rubrik could see subscription revenue in 2024 and 2025 exceed $710 million and $890 million, with subscription gross margins exceeding the low 80s. There is. “Based on our estimates, Rubrik's IPO price range implies approximately 5.0x to 6.0x for the 25E subscription revision and approximately 6.0x to 7.0x for the 2025E subscription gross margin,” they said. Ta.
IPO market recovery
The US IPO market has shown a strong recovery, driven by the recent success of notable products such as the Reddit IPO. Investor confidence is rising amid strong earnings and overall positive market sentiment, which collectively contribute to a favorable environment for companies seeking to go public.
The strong performance of recent IPOs, including the debut of Reddit, has injected new momentum and enthusiasm into the IPO environment. This success has not only increased investor interest but also encouraged more companies to consider entering the public markets.
The resurgence in IPO activity signals a renewed appetite for new investment opportunities and signals growing optimism in the broader market. Against this backdrop, Rubrik's upcoming IPO will benefit from this revitalized investment environment, putting the company in a favorable position in preparing to enter the public market. . The evolving situation presents a promising opportunity for Rubrik to capture investor interest and leverage current market dynamics to its advantage.
