Netskope prices IPO at $19, valuing company at $7.3 billion

Cybersecurity company Netskope is eying a $7.3 billion valuation after pricing shares at $19 for its upcoming IPO, at the top end of its expected range.

Netskope will start trading on Thursday on the Nasdaq under the ticker symbol “NTSK.” The share sale raised $908.2 million.

Earlier this week, Netskope lifted its expected pricing range to between $17 and $19 a share, up from an original range of $15 to $17. The company revealed plans to go public last month.

Netskope’s offering comes amid a hot period for IPO activity after a years-long lull spurred by step inflation and soaring interest rates. The long-overdue resurgence has fueled optimism on Wall Street and in a venture capital industry eager for return on investment.

Ticket reseller StubHub slid 6% it its first day of trading Wednesday, but a lackluster start may not be reason for concern. CoreWeave went public in March and closed flat in its first day, with shares going on to triple.

Swedish buy now, pay later firm Klarna jumped 15% in its debut this month. Peter Thiel-backed cryptocurrency exchange Bullish, design software company Figma and stablecoin issuer Circle have also jumped since their recent market debuts.

The cybersecurity sector is also undergoing a busy stretch for dealmaking fueled by ongoing artificial intelligence advancements and a shifting threat landscape.

This year’s biggest tech deals include Google’s whopping $32 billion acquisition of Israeli cloud security startup Wiz and Palo Alto Network‘s $25-billion CyberArk buyout. Thoma Bravo-backed SailPoint went public in February after the private equity firm took it private in 2022. Cybersecurity competitors CrowdStrike and Zscaler have also made acquisitions this year to beef up their offerings.

Santa Clara, California-based Netskope was founded in 2012 and is led by co-founder and CEO Sanjay Beri. At the end of July, the company said it had 2,910 employees and 4,317 customers across 90 countries.

Netskope says it competes in the IT security vendor and networking space against the likes of Broadcom, Cisco, Palo Alto Networks and Zscaler.

Annual recurring revenues rose 33% to $707 million at the end of July and revenues reached $328 million for the six months ended July 31. The company also reported a net loss of $170 million during that period.

Some of Netskope’s significant backers include Accel, Iconiq and Lightspeed Venture Partners.

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