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Netskope raises $908.2 million in its US IPO, buoyed by rising investor confidence in cloud security amid an expanding market and escalating cyber threats, with the company’s valuation reaching $7.26 billion.
Cybersecurity firm Netskope has successfully raised $908.2 million in its U.S. initial public offering (IPO), with the company’s valuation reaching $7.26 billion. The company, founded in 2012 and based in Santa Clara, California, saw strong investor demand, with shares priced at $19 each—at the top end of the target range. Netskope’s stock began trading on the Nasdaq exchange under the ticker symbol “NTSK,” with Morgan Stanley and J.P. Morgan serving as lead underwriters.
Netskope’s IPO reflects a broader revival of the tech IPO market, which has rebounded after a period of uncertainty partially linked to trade tensions and tariff-related delays during the previous U.S. administration. Investor enthusiasm for high-growth technology sectors, particularly those focused on cybersecurity, has sharply increased amid a surge in cyber threats such as ransomware attacks and data breaches affecting enterprises globally.
The company specialises in cloud-based cybersecurity software, offering its Netskope One platform that delivers contextual intelligence to secure digital interactions without compromising user experience. Netskope operates in the expanding secure access service edge (SASE) market alongside major industry players like Palo Alto Networks, Cisco, Fortinet, and Zscaler. This market is forecasted to grow significantly, with estimates predicting it will exceed $25 billion by 2027, driven by the ongoing digital transformation and the increasing adoption of cloud technologies.
Financially, Netskope has shown marked improvement. For the six months ending July 31, it reported revenue of $328 million, up from $251 million during the same period the previous year. Although still operating at a net loss, the company has narrowed this to $170 million compared with a $207 million loss a year earlier, signalling progress towards profitability. Netskope’s growth has been propelled by accelerating subscription revenues, which have reportedly increased faster than the industry average, underlining the strong demand for its cybersecurity solutions.
The IPO pricing was adjusted upwards recently, with the company revising its expected share price range from $15–$17 to $17–$19, indicating strong investor confidence ahead of the listing. This upbeat reception contrasts with Netskope’s 2021 private funding round, which valued the company at approximately $7.5 billion, slightly higher than the current public valuation. Netskope joins other significant tech firms in the IPO resurgence of 2025, following peers such as CoreWeave, Circle, and Figma.
Netskope’s entry to the public market underscores the escalating importance of cloud security in the face of evolving digital threats and highlights the robust appetite among investors for cybersecurity firms positioned to benefit from the increasing array of challenges facing enterprises worldwide.
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Source: Noah Wire Services
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