Rubrik, a data-management software company backed by Microsoft, priced its IPO at $32 a share, surpassing the expected range. The company, founded by CEO Bipul Sinha, planned to sell 23 million shares in its New York Stock Exchange debut, raising $752 million and valuing the company at $5.6 billion. Rubrik’s IPO comes at a time when the venture-backed tech IPO market has been slow, with concerns about the economy and interest rates keeping companies private for longer periods.

Despite the challenging IPO market conditions, Rubrik has made the transition from selling perpetual licenses to focusing on cloud-based cybersecurity software subscriptions. This shift has led to a significant increase in revenue from subscriptions, now accounting for 91% of total revenue. The company’s customer base includes notable names such as Barclays, Carhartt, and Home Depot, with almost 100 customers contributing over $1 million in subscription annual recurring revenue.

While Rubrik’s revenue saw a modest increase in the last fiscal year, reaching 5%, the company reported widening losses, with a net loss of $354 million compared to around $278 million in the previous year. Microsoft’s investment in Rubrik in 2021, along with support from venture firm Lightspeed, has positioned the company for growth and innovation in the data security sector.

CEO Bipul Sinha, a former partner at Lightspeed, maintains an 8% control in the company following the IPO, while Lightspeed holds over 25% of the voting power. Rubrik’s focus on cloud-based cybersecurity solutions has resonated with businesses seeking to secure their data in cloud environments and mitigate risks such as ransomware attacks.

The successful pricing of Rubrik’s IPO at $32 per share highlights investor confidence in the company’s strategic direction and market potential. As the tech industry continues to evolve, Rubrik’s shift towards cloud-based solutions and subscription models positions it well for future growth and innovation in the data management sector.