Netskope surged in its first day of trading on the Nasdaq, opening at $23 after pricing at $19, and briefly valuing the Santa Clara, California company near $8.8 billion.
The strong start places the cloud-security vendor among the year’s better performing tech newcomers and underscores investor demand for businesses tied to rising cyber risk and AI adoption.
The offering raised about $908 million for the company on the sale of $47.8 million shares. Netskope is trading under the symbol NTSK.
Underwriters have a 30-day option to buy up to 7.17 million additional shares, which could lift proceeds if exercised. Morgan Stanley and J.P. Morgan led the deal.
At $19 a share, the offering valued Netskope near $7.3 billion. The first trade at $23 pushed that closer to $8.8 billion, narrowing the gap with recent private-market marks and reflecting a market that is rewarding category leaders with visible growth and large addressable markets.
Netskope sells software that sits at the center of modern enterprise security, helping customers secure cloud applications, web traffic and sensitive data as employees work from anywhere.
The company’s platform addresses spending priorities that many CIOs and CISOs view as essential, from zero trust access to data loss prevention that focus has translated into rising revenue and improving losses ahead of the listing.
In the six months ended July 31, Netskope generated $328 million in revenue and recorded a net loss of $170 million, compared with $251 million in revenue and a $207 million loss in the year-earlier period.
The debut also lands at a moment when the IPO window is more selective but clearly open for profitable paths in cybersecurity and infrastructure software.
Narrative has been supported by previous venture backing and a 2021 funding round that put the company north of $7.5 billion, giving today’s public valuation a familiar reference point.
Whether the stock holds its early gains will depend on execution and the broader market’s tolerance for losses while growth remains the main draw.
Management has said proceeds will help fund general corporate purposes, which typically include product investment and go-to-market expansion, and the underwriters’ option offers additional flexibility if demand persists.
With rivals that include larger public players, Netskope’s next act will be converting top-line momentum into a credible path toward sustainable cash flows.
