Cybersecurity firm Netskope lifts IPO price range, eyes $7.3 billion valuation

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(Reuters) – Cybersecurity firm Netskope is now aiming for a valuation of up to $7.26 billion in its U.S. initial public offering after raising the proposed price range, it said on Tuesday, underscoring investor appetite for high-growth tech stocks.

Netskope’s offering marks the second notable cybersecurity IPO of 2025 in New York after Thoma Bravo-backed SailPoint listed its shares in February and comes at a time when stricter data privacy regulations and the rise of AI-driven threats act as tailwinds for the secure access service edge (SASE) market.

The Santa Clara, California-based company is now looking to raise as much as $908.2 million by selling 47.8 million shares priced between $17 and $19 apiece. That compares with its prior price target of between $15 and $17 apiece.

The new targeted valuation puts Netskope closer to the $7.5 billion it commanded in a 2021 funding round led by investment firm ICONIQ.

While SailPoint had upsized its IPO and priced it at the top of its marketed range, it failed to deliver share price growth in the aftermarket.

Netskope, founded in 2012, develops cloud-based security software that helps businesses safeguard apps, websites and data from cyber threats.

The company competes against Broadcom, Cisco, Fortinet, Palo Alto Networks, and Zscaler in the rapidly expanding SASE market.

Netskope’s net loss narrowed to $170 million on revenue of $328 million in the six months ended July 31, compared with a net loss of $207 million on revenue of $251 million a year earlier.

Morgan Stanley and J.P. Morgan are the lead underwriters for the offering. Netskope will list on the Nasdaq under the “NTSK” symbol.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Anil D’Silva and Shailesh Kuber)