Netskope IPO In Demand as AI Era Heightens Cyber Threats

Fears that artificial intelligence will force companies to spend more on security software are helping to drive demand for Netskope Inc.’s initial public offering.

Early Tuesday, Netskope raised its marketing range to seek as much as $908.2 million, not a surprise given the similar progression of many software IPOs in the recent past, and a move that points to a robust outcome when the offering prices as scheduled late Wednesday. The deal is about 20 times oversubscribed, Bloomberg News reported earlier Tuesday.

The firm’s annual recurring revenue as of July 31 increased 33% year-over-year to $707 million. With analysts ...