Cybersecurity firm Netskope is now targeting a valuation of up to $7.26 billion in its U.S. initial public offering (IPO), after it raised its proposed price range. This move highlights a strong investor appetite for high-growth tech stocks.
Netskope’s offering is the second significant cybersecurity IPO in New York this year, following Thoma Bravo-backed SailPoint’s listing in February. It comes at a time when a combination of stricter data privacy regulations and the rise of AI-driven threats is providing tailwinds for the secure access service edge (SASE) market.
The company, based in Santa Clara, California, now plans to raise as much as $908.2 million by selling 47.8 million shares at a price between $17 and $19 apiece. This is an increase from its prior target of $15 to $17 per share. The new valuation brings Netskope closer to the $7.5 billion it achieved during a 2021 funding round led by investment firm ICONIQ.
Founded in 2012, Netskope specializes in developing cloud-based security software that protects businesses’ apps, websites, and data from cyber threats. The company competes with major players like Broadcom, Cisco, Fortinet, Palo Alto Networks, and Zscaler in the rapidly expanding SASE market.
Netskope reported that its net loss narrowed to $170 million on revenue of $328 million for the six months ending July 31. This is an improvement from a net loss of $207 million on revenue of $251 million during the same period a year earlier.
