Form 4: Greylock XIV GP LLC Reports Conversion of Preferred Stock to Common Stock Following Rubrik, Inc.'s IPO

Greylock XIV GP LLC and affiliated entities report the conversion of preferred stock to Class A and Class B common stock in Rubrik, Inc. following the company's initial public offering.

Summary

• Greylock XIV GP LLC, along with Greylock XIV Limited Partnership, Greylock XIV-A Limited Partnership, and Greylock XIV Principals LLC, filed a Form 4 on May 1, 2024, reporting transactions related to Rubrik, Inc. (RBRK).
• The report details the conversion of Series B, C, D, and E Preferred Stock into Class B Common Stock on April 29, 2024, immediately prior to Rubrik's IPO.
• The conversion occurred on a one-for-one basis.
• Greylock XIV Limited Partnership converted 11,583,248 shares of Series B Preferred Stock, 1,950,165 shares of Series C Preferred Stock, 3,417,116 shares of Series D Preferred Stock, and 955,260 shares of Series E Preferred Stock into Class B Common Stock.
• Additionally, Greylock XIV Limited Partnership converted 17,905,789 shares of Class B Common Stock into Class A Common Stock.
• Greylock XIV-A Limited Partnership converted 643,512 shares of Series B Preferred Stock, 108,342 shares of Series C Preferred Stock, 189,840 shares of Series D Preferred Stock, and 53,070 shares of Series E Preferred Stock into Class B Common Stock.
• Furthermore, Greylock XIV-A Limited Partnership converted 994,764 shares of Class B Common Stock into Class A Common Stock.
• Greylock XIV Principals LLC converted 643,512 shares of Series B Preferred Stock, 108,342 shares of Series C Preferred Stock, 189,840 shares of Series D Preferred Stock, and 53,070 shares of Series E Preferred Stock into Class B Common Stock.
• Finally, Greylock XIV Principals LLC converted 994,764 shares of Class B Common Stock into Class A Common Stock.
• The filing indicates that Greylock XIV GP LLC may be deemed to share voting and dispositive power over the shares held by the partnerships and principals, but disclaims beneficial ownership except to the extent of any pecuniary interest.

Sentiment

Score: 7

Explanation: The document reflects a standard post-IPO procedure (conversion of preferred stock), which is generally viewed neutrally to positively as it simplifies the capital structure. The sentiment is therefore moderately positive.

Positives

• The conversion of preferred stock to common stock is a standard procedure following an IPO and simplifies the company's capital structure.

Industry Context

Following an IPO, it's typical for preferred stock to convert to common stock, aligning the interests of early investors with public shareholders and simplifying the capital structure. This is a routine step in the transition to a publicly traded company.

Comparison to Industry Standards

• The conversion of preferred stock to common stock following an IPO is a standard practice observed across the technology industry.
• Companies like Snowflake and Datadog underwent similar conversions upon their IPOs to streamline their equity structure.
• The one-for-one conversion ratio is also a common arrangement, ensuring that preferred shareholders receive a fair equivalent in common stock.

Stakeholder Impact

• The conversion simplifies the capital structure, potentially making the company more attractive to a broader range of investors.
• Existing shareholders may experience a dilution of ownership as preferred shares convert to common shares.

Key Dates