Rubrik reportedly plans to sell 23 million shares in its upcoming IPO.
The shares will be priced between $28 and $31 each according to Reuters, with gross proceeds estimated at between $644 million and $713 million. The net proceeds, after banking fees and so forth will be significantly less. Rubrik’s valuation at the top end of the range would be about $5.4 billion.
Rubrik did not respond to a request for comment.
The shares on offer are classified as Class A shares and have 1 voting right per share. There are separate existing Class B shares which are not for sale and these each have voting rights equivalent to 20 Class A shares. Rubrik’s S1 SEC IPO filing statement, documented at the start of this month, said there were: “163,046,971 shares of Class B common stock outstanding as of January 31, 2024.”
CEO and co-founder Bipul Sinha owns 12,342,646 Class B shares, co-founder Arvind Jain has 11,404,364 while co-founder and CTO Arvind Nithrakashyap possesses 10,896,392 Class B shares.
VCs Lightspeed and Greylock own almost 59 million between them.
All this means large buyers of Class A shares will not be able to take control of the company from existing Class B shareholders.
One complicating factor for the IPO could be an ongoing fraud investigation. The US Department of Justice is looking into the siphoning off of an undisclosed amount of funds from 110 US government contracts, worth $46 million, into a separate business entity run by a former Rubrik sales division employee. There is no information available on the US Justice Department website about how this probe is progressing.
Since Rubrik filed its S1 IPO document, arch rival Cohesity, which is buying the bulk of Veritas’ data protection business, has disclosed a $150 million F-round of fundraising. This takes its total raised to $955 million. Both Nvidia and IBM participated in the round as strategic investors. The combined Cohesity-Veritas data protection business has a reported $7 billion valuation.
