(Reuters) -Rubrik's shares climbed nearly 21% in their debut on the New York Stock Exchange on Thursday, giving the Microsoft-backed cybersecurity firm a valuation of $6.77 billion.
The startup joins a list of companies that have seen strong debuts recently as initial public offerings (IPOs) bounce back on hopes of a soft landing for the economy, where inflation falls without a recession or big job losses.
The rapid adoption of cloud applications for data storage and transfer has left businesses vulnerable to malicious attacks via the internet and boosted the appeal of cybersecurity firms.
Palo Alto, California-based Rubrik provides data security solutions to more than 6,100 customers including appliance maker Whirlpool (NYSE:WHR), snacks and beverages giant PepsiCo (NASDAQ:PEP) and investment bank Goldman Sachs.
Initially named ScaleData, Rubrik competes with data management and protection vendors including Cohesity, Commvault, Veeam, IBM (NYSE:IBM) and Dell (NYSE:DELL) EMC (NYSE:EMC_old).
The company's stock opened at $38.6, higher than the $32 IPO price, and were last trading at $37. Rubrik raised $752 million in the IPO.
The strong debut comes against the backdrop of weakness in the broader equities market. The Russell 2000 Index, which measures the performance of small-cap U.S. equities, has dropped nearly 7% so far this month.
Rubrik was founded in late 2013, but only began offering products and services in the fiscal year ended Jan. 31, 2016. It is led by co-founder and CEO Bipul Sinha, who is also a venture partner at Silicon Valley's technology investment firm Lightspeed Venture Partners.
Microsoft (NASDAQ:MSFT) made an equity investment in Rubrik in 2021 in a financing round that valued the startup at $4 billion. Venture capital firms Greylock Partners and Lightspeed have also backed the company.
The IPO was underwritten by a syndicate of more than a dozen banks including Goldman Sachs, Barclays, Citigroup and Wells Fargo Securities.