Cyber Group Netskope Ready to Dial Up $5B IPO

Cybersecurity firm Netskope has reportedly hired investment bank Morgan Stanley (MS) to lead a $500 million IPO later this year.

Apps Protection

According to a report from Reuters, Netskope is aiming to go public as early as the third quarter of this year, raising over $500 million and seeing the company valued at over $5 billion.

Founded in 2012, Netskope provides cloud-based security software that helps companies protect apps, websites, and data from cyber threats. It competes with companies such as Rubrik (RBRK) and Zscaler (ZS).

Santa Clara, California-based Netskope has been backed by investors including Morgan Stanley Tactical Value, CPP Investments, Goldman Sachs (GS) Asset Management, and the Ontario Teachers’ Pension Plan.

Its clients include retailer Ross Stores (ROST) and Yamaha (YAMCF), and it was recently selected by MetTel, a global communications provider to businesses and governments agencies, to bolster its customers’ security.

Public Awareness

Netskope was valued at $7.5 billion in 2021, when tech valuations were particularly frothy, but they have dipped since as a result of both economic and market uncertainty.

Although chief executive Sanjay Beri said in June last year that the company had been making initial preparations for an IPO to help grow awareness of the brand, the recent market turmoil may have delayed the timeline.

However, with markets being slightly more steady as tariff fears ease, this could be good timing. The global cybersecurity market is also continuing to flourish, valued at $193.73 billion in 2024 and expected to grow to $562.72 billion by 2032.

It could set the starting pistol on other IPOs, with fintech firm Chime potentially in the frame.

What are the Best Cybersecurity Stocks to Buy Now?

We have rounded up the best cybersecurity stocks to buy using our TipRanks comparison tool.