Cloud security company Netskope has enlisted Morgan Stanley to spearhead its efforts for a potential U.S. initial public offering (IPO) that could raise upwards of $500 million, according to individuals with knowledge of the matter.
The California-based firm is targeting a listing as early as the third quarter of 2025, two sources revealed. Three insiders also noted that the IPO could value Netskope at more than $5 billion. However, they cautioned that final decisions around valuation, timing, and the capital raised will depend on evolving market dynamics. All sources spoke anonymously, citing the confidential nature of the discussions.
Netskope, founded in 2012 and headquartered in Santa Clara, specializes in cloud-native cybersecurity solutions. Its software enables enterprises to secure applications, websites, and sensitive data from cyber threats. The company competes with names like Zscaler Inc and Rubrik Inc, the latter of which has seen its stock soar nearly 200% since going public in April.
Netskope’s backers include high-profile investors such as Morgan Stanley Tactical Value, Goldman Sachs Asset Management, CPP Investments, and the Ontario Teachers’ Pension Plan. Although the company achieved a $7.5 billion valuation in 2021, broader market corrections in the tech space may impact its future IPO pricing.
Among its known clientele are retail chain Ross Stores and Yamaha, as noted on its website. CEO Sanjay Beri mentioned in a June 2024 interview that the company had been preparing internally for a public debut, which he believes would enhance brand visibility.
While early-year optimism for a U.S. IPO resurgence has been dampened by economic and geopolitical concerns—including tariff uncertainties—recent signs of stability have renewed interest. Other companies, such as fintech startup Chime and trading platform eToro, which had delayed their IPOs due to market turbulence in April, have since resumed preparations.
As the cybersecurity sector continues to attract investor attention, especially following Rubrik’s strong debut, Netskope’s entry into public markets could signal further momentum for the space.
