[U.S. IPO] Netskope Raises $908 Million in IPO, Debuts Thursday: A Rising Star in Cloud Security?

TradingKey - Backed by venture capital firm Lightspeed Venture Partners, Netskope Inc., a technology provider specializing in securing enterprise cloud services, has raised $908.2 million in its IPO. The company's valuation now exceeds $7 billion. Netskope is set to list on the Nasdaq under the ticker symbol "NTSK" on Thursday.

Founded in 2012, Netskope is a cybersecurity company that aids large enterprises in safeguarding data on cloud platforms like Google Drive and Dropbox. According to its IPO prospectus, Netskope's competitors include well-known cybersecurity firms such as Palo Alto Networks, Cisco, and Broadcom.

Its clientele comprises renowned companies such as Colgate, Home Depot, and Bayer. As digital attacks increasingly threaten operational continuity and confidential data, cybersecurity has become a critical component of global corporate budgets.

According to CNBC, Netskope sold 47.8 million shares at an issue price of $19 each on September 17. Earlier this week, the company raised its expected price range from an initial $15-$17 to $17-$19 per share, reaching the upper end in the final pricing.

From the disclosed financials, Netskope reduced its net loss to $170 million for the six months ending July 31, with revenue of $328 million. This is an improvement from the previous year's net loss of $207 million and revenue of $251 million, indicating enhanced profitability.

Driven by advancements in AI-related technologies, the cybersecurity industry has seen a surge in deal-making this year. In March, Google agreed to acquire Israeli cybersecurity unicorn Wiz for $32 billion, marking its largest acquisition to date. In July, Palo Alto Networks announced plans to acquire Israeli identity security provider CyberArk in a deal valued at approximately $25 billion. Analysts suggest these high-value transactions have prompted a revaluation of the cybersecurity sector. Additionally, given the current revival of the IPO market, particularly in the tech sector, there is optimism surrounding this IPO.