Netskope Lifts IPO Price Range, Eyes Up to $908M at $7.26B Valuation

Cybersecurity firm Netskope has elevated its proposed price range for its U.S. initial public offering (IPO), reflecting robust investor interest in technology companies. The Santa Clara-based company now intends to offer 47.8 million shares at $17 to $19 each, an increase from its initial target of $15 to $17 per share. This adjustment, according to Bloomberg, could enable Netskope to raise up to $908.2 million, exceeding its previous objective of $812.6 million. Reuters reports that the revised pricing could value Netskope at as much as $7.26 billion, nearing its $7.5 billion valuation from a 2021 funding round. This significant revision highlights a strong demand for high-growth technology stocks. Netskope's offering is positioned as the second major cybersecurity IPO in New York this year, following SailPoint. The company competes within the secure access service edge (SASE) market, a sector experiencing growth driven by escalating data privacy regulations and the increasing prevalence of AI-powered cyber threats. Founded in 2012, Netskope develops cloud-based security software designed to safeguard business applications, websites, and data. Its key competitors include industry leaders such as Broadcom, Cisco, Fortinet, Palo Alto Networks, and Zscaler. The company has demonstrated financial improvement, reporting a net loss of $170 million on $328 million in revenue for the six months ending July 31. This represents an enhancement compared to the $207 million loss on $251 million in revenue recorded during the same period last year. Morgan Stanley and J.P. Morgan are serving as lead underwriters for the IPO, with Netskope slated to list on the Nasdaq under the ticker symbol "NTSK".