By Arasu Basil,Atharva Singh,Echo Wang

Copyright reuters

CompaniesNetskope, Inc.Circle Internet Group IncFigma Inc

Sept 18 (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.

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The U.S. IPO market is enjoying its strongest momentum in years, with several tech listings, including design software maker Figma (FIG.N), opens new tab, delivering blowout debuts, signaling pent-up investor demand for new issues.

Corporates are ramping up enterprise security spending given the rise of AI-driven cybersecurity threats, creating strong demand for Netskope’s offerings.

“AI is kind of right in our wheelhouse ..securing it, enabling companies to say yes to leveraging it, by putting guardrails around it,” Netskope CEO Sanjay Beri told Reuters in an interview.

Founded in 2012, Netskope provides cloud-based security software that helps companies protect apps, websites and data from cyber threats.

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Netskope CEO Sanjay Beri added that they want more people to know about Netskope, and becoming a public company helps achieve that goal. He also noted that the IPO had a very high demand, being oversubscribed 20 times.

“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 (RBRK.N), opens new tab shares have more than doubled since their debut last year, SailPoint (SAIL.O), opens new tab 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.

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The company, whose rivals include Palo Alto Networks (PANW.O), opens new tab and Zscaler (ZS.O), opens new tab, 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

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Arasu Kannagi BasilThomson ReutersBasil writes stories across the U.S. finance file including banks, asset managers, payment firms, insurers, and exchange operators. He also covers initial public offerings on U.S. exchanges and venture capital funding.Echo WangThomson ReutersEcho Wang is a correspondent at Reuters covering U.S. equity capital markets, and the intersection of Chinese business in the U.S, breaking news from U.S. crackdown on TikTok and Grindr, to restrictions Chinese companies face in listing in New York. She was the Reuters’ Reporter of the Year in 2020.