Cybersecurity startup Netskope set to go public with expected $6.5 billion IPO

Staff Reporter | PNN:

Thirteen-year-old cybersecurity startup Netskope is soon set to enter the stock market. The company is known as a provider of Secure Access Service Edge (SASE) and offers security solutions for enterprise cloud infrastructure. Netskope’s main competitors include Zscaler and Palo Alto Networks.

Netskope has priced its IPO shares between $15 and $17. The company’s major investor, Lightspeed Venture Partners, currently owns 19.3% of the shares. ICONIQ Growth holds 19.2%, and Accel owns nearly 9% of the shares. Through the IPO, Lightspeed is expected to realize a potential gain of around $1.1 billion.

The company’s revenue for the first half of the year reached $328.5 million, up from $251.3 million in the previous year. Net losses decreased to $169.5 million, compared to $206.7 million the prior year.

If Netskope’s IPO succeeds, it will join a group of VC-backed companies that went public at a lower price than their last private valuations. Previously, Chime and Hinge Health had undertaken similar IPOs. On the other hand, some recent IPOs, such as Figma and Circle, achieved market success on their first trading day.