Netskope, the cyber security company, has raised the projected share price range for its initial public offering, signalling growing confidence in investors’ appetite for technology companies with high growth potential. The IPO will be a closely watched indicator of the health of the IPO market, particularly in the cyber security sector.
The Santa Clara, California-based company plans to raise up to $908.2 million by offering 47.8 million shares at a new, higher price range of $17 to $19 apiece. Previously, the price was assumed to be in the range of $15 to $17. At the maximum price from the new offering, Netskope’s valuation could reach $7.26bn.
It is worth noting that the new target valuation is slightly lower than the $7.5 billion the company achieved during the 2021 funding round led by the ICONIQ fund. This adjustment reflects more challenging market conditions compared to the peak of the technology bull market.
The decision to raise the offer price is based on solid market fundamentals. Growing cyber threats driven by artificial intelligence and increasingly stringent data privacy regulations are increasing demand for advanced cloud solutions.
Netskope is one of the key players in the rapidly growing SASE (Secure Access Service Edge) market, where it competes with giants such as Palo Alto Networks, Zscaler, Cisco and Broadcom.
The company’s financial figures show a promising trajectory. In the six months ended 31 July, Netskope’s revenues rose to $328 million from $251 million a year earlier.
At the same time, the company has managed to reduce its net loss from $207m to $170m, suggesting improved operational efficiency as the business scales.
Netskope’s IPO is the second significant IPO in the cyber security industry in 2025, following SailPoint’s February offering. Although SailPoint managed to price its shares at the upper end of the spectrum, its secondary market listing failed to deliver the expected upside for investors.
This experience provides an important benchmark for investors assessing Netskope’s prospects.
The offering is being managed by leading investment banks, Morgan Stanley and J.P. Morgan. The company’s shares will be listed on Nasdaq under the symbol ‘NTSK’.
The upcoming IPO will be a key test for the sector as a whole and could set the sentiment for more technology companies planning to go public.
