Updated:

Data security software provider Rubrik Inc. today set an initial public offering price of $32 per share ahead of its listing on the New York Stock Exchange Thursday morning, raising $752 million.

The Rubrik IPO will see the company offering 23 million shares on a valuation of $5.6 billion, according to Bloomberg, although including stock options and restricted share units, its fully diluted valuation would be closer to $6.6 billion. The report notes that Rubrik had received 20 times as many orders as there were shares available.

Update: Rubrik’s shares shot up 20% in initial trading Thursday morning, opening at $38.60 per share. By the end of the day, they backed off slightly but still closed up almost 16%, to $37.

Reports that Rubrik was looking to go public emerged through 2023, including in June and September. The company eventually disclosed its intentions on April 1.

Founded in 2014, Rubrik provides data management and protection solutions that focus on enabling automation in the data center. The company’s products and services simplify data backup and recovery, including support for virtual and physical environments, cloud storage backup and database backups.

Its services include an application programming interface-first architecture that allows for the automation of data recovery and management functions across applications, clouds and protocols. Other offerings include backup and recovery services and tools that are claimed to achieve near-zero recovery point objectives and minimize data loss in the event of ransomware, hardware failure, data corruption or other disruptions.

The Rubrik IPO is an arguably bold move at a time when public offerings have mostly dried up amid global macroeconomic uncertainty, including the war in Ukraine, ongoing issues with inflation and high interest rates. However, its decision to go public now could be a sign of a shifting mood in capital markets.

The most recent PitchBook-NVCA Venture Monitor for the first quarter of 2024 found that exits in the quarter were dominated by two initial public offerings of two companies, Reddit and Astera Labs Inc., on March 19 and 20. The two exits combined for 73% of the total exit value generated through March.

Two big IPOs do not make a trend, but the report did note that they have “created buzz in the market narrative because of how slow exits have been for two years.” Though both IPOs went reasonably well, the report argues that there is still uncertainty as to the prospects of IPOs moving forward. Rubrik’s reception may indicate market sentiment is shifting to the positive.

With reporting from Robert Hof

Photo: Rubrik