$40 a Share? Mapping Out Rubrik's Potential IPO Valuation

Admin

Administrator
Staff member
May 18, 2022
252
4
18
Estimating an IPO share price based on past companies' experiences requires considering several variables, such as industry sector, market conditions at the time of the IPO, growth rates, profitability, and the specific financial metrics of the companies at the time of their IPOs. However, for the sake of providing a broad, illustrative estimate, let's consider a few assumptions and industry benchmarks.

For a technology company like Rubrik, which operates in the cloud data management and cybersecurity space, the valuation at IPO can be significantly influenced by its growth potential, market demand for its services, and comparison to peers' valuations at their IPOs. Given Rubrik's last known valuation of $3.3 billion, let's assume a high demand scenario, considering the current interest in technology and cybersecurity solutions.

If we look at past tech IPOs, share prices have varied widely. For example, some tech companies have had initial pricing ranges from as low as $10 to $15 per share to as high as $100 or more per share, depending on the number of shares issued and the total valuation sought.

Let's hypothesize Rubrik aims for a market capitalization similar to its last funding round (i.e., around $3.3 billion) but seeks a higher valuation due to IPO hype, say $4 billion. Without knowing the exact number of shares to be offered, if we arbitrarily pick a figure, say Rubrik decides to issue 100 million shares, this would imply a simple calculation of $40 per share to achieve a $4 billion valuation.

This is purely speculative and doesn't take into account the intricacies of IPO pricing, including underwriter assessments, investor appetite, and market conditions at the IPO time. The actual share price could be significantly different based on these and other factors. Investors often look to the IPO prospectus and follow news on the roadshow for more accurate pricing information closer to the IPO date.