Rubrik, a cloud-native data security/SaaS tech business, launched its IPO roadshow earlier this week and is expected to start trading as a public company this month.
Rubrik IPO - Here are Five Things to Know:
- RBRK's IPO date — Rubrik is expected to begin trading on the New York Stock Exchange on Thursday, April 25, under the ticker symbol RBRK. Generally, shares that make their public stock market debuts start trading between 10 AM - 2 PM ET.
- Shares Offered — the company will be making 23 million shares available. Concurrently, RBRK is planning to issue $450 million worth of senior notes. There is also a 15% greenshoe of approximately 3.45 million.
- Valuation — RBRK's IPO pricing range is between $28 and $31 per share, implying a market cap ranging from $5.3 billion to $5.87 billion.
- Raised Proceeds — The company is looking to raise around $713 million in its IPO.
- Underwriters — The primary underwriter for the Rubrik's IPO is Goldman Sachs. Barclays, Citigroup, Wells Fargo, and 11 other institutions will also be underwriters.
In a note to clients this week, analysts said they see a generative artificial intelligence-related opportunity at the company.
"Gen AI adoption across enterprises unlocks a greater need for companies to be careful to not expose sensitive and proprietary data to LLMs and protect Gen AI data against more sophisticated cyberattacks," said the analysts. "Long-term operating model: RBRK's long-term business model appears fairly typical for a SaaS company with RBRK having to travel the farthest as far as Sales & Marketing leverage is concerned."
Furthermore, assessing the business, analysts said that during the fiscal year ended January 2024, Rubrik generated $628 million in total revenue, implying ~4.5% year-over-year growth.
The analysts believe Rubrik could generate CY24 and CY25 subscription revenues exceeding $710 million and $890 million, with subscription gross margin exceeding the low 80s. "Based on our estimates, Rubrik's IPO pricing range implies approximately 5.0x to 6.0x on '25E Subscription Revs and approximately 6.0x to 7.0x on 2025E Subscription Gross Profit," they stated.
The IPO Market Recovery
The US IPO market is demonstrating a robust recovery, buoyed by the recent success of notable offerings such as the Reddit IPO. Investor confidence is rising amidst solid earnings and an overall positive market sentiment, which collectively contribute to a conducive environment for companies seeking to go public.
The strong performance of recent IPOs, including Reddit's debut, has injected fresh momentum and enthusiasm into the IPO landscape. This success has not only attracted heightened interest from investors but has also encouraged more companies to consider tapping into the public markets.
The resurgence in IPO activity signifies a renewed appetite for new investment opportunities and showcases growing optimism in the broader market. Against this backdrop, Rubrik's upcoming IPO stands to benefit from this revitalised investment climate, positioning the company favorably as it prepares to enter the public market. The evolving landscape presents a promising opportunity for Rubrik to capture investor interest and leverage the current market dynamics to its advantage.