By Atharva Singh and Arasu Kannagi Basil
(Reuters) - Cybersecurity firm Netskope commanded an $8.79 billion valuation as its shares jumped 21% in their Nasdaq debut on Thursday, adding to a string of successful tech IPOs this year.
The Santa Clara, California-based company's shares opened at $23 apiece, well above the $19 offer price. Netskope raised $908.2 million in its IPO by selling 47.8 million shares at the top end of its bumped-up range of $17 to $19 apiece.
The U.S. IPO market is enjoying its
strongest momentum in years, with investors showing robust appetite for new listings.
Several tech listings, including design software maker Figma and stablecoin issuer Circle, have delivered blowout debuts, signaling pent-up investor appetite for new listings.
Netskope, founded in 2012, develops cloud security software that protects cloud applications, secures web traffic and enables remote access while safeguarding sensitive data.
With the increasing frequency and sophistication of cyberattacks, corporates are ramping up enterprise security spending, creating strong demand for Netskope's offerings.
The firm'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.
"Netskope's debut will be closely watched because cybersecurity remains one of the few technology sectors with clear structural demand, yet recent IPO performances have been mixed," said Kat Liu, vice president at IPO research firm IPOX.
While Rubrik shares have more than doubled since their debut last year, SailPoint has struggled to trade above its offer price since its February listing.
"Netskope's long-term performance will depend on broader market conditions, profitability trends and how it executes in an increasingly competitive space," said Greg Martin, managing director at Rainmaker Securities.
The company, whose rivals include Palo Alto Networks and Zscaler, was valued at over $7.5 billion in a 2021 funding round led by investment firm ICONIQ.
(Reporting by Atharva Singh and Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore)
