Two cybersecurity unicorns, Snyk and Cato Networks, are preparing for initial public offerings that could launch as soon as this year, according to a report.
The report from The Information indicated that Snyk’s IPO prospectus for investors could be filed with regulators within several months. And Cato is expected to bring on the banks that will lead its IPO as soon as March, with the company looking to go public some time later in 2024, according to the report.
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When reached by CRN Friday, a Cato spokesperson said the company has “nothing new to share about our IPO intentions.” Snyk said in a statement that it “never comments on market speculation or rumors.”
The company is not facing financial pressure to go public, though there’s a case to be made for not waiting too long, McKay acknowledged. Competitors have also disclosed IPO aspirations, and whoever gets public first will no doubt enjoy a branding and PR boost, he said.
“We recognize that,” McKay said. “So those are the drivers of doing it sooner.”
Snyk ranks among the top-valued cybersecurity unicorns with a valuation of $7.4 billion as of a late 2022 funding round.
Meanwhile, SASE vendor Cato Networks disclosed that its valuation surpassed $3 billion in connection with its $238 million funding round in September 2023.
For the cybersecurity industry, it’s been more than two years since a pure-play security vendor went public, even as numerous publicly traded cybersecurity vendors have been taken private.
For instance, ForgeRock completed the most recent pure-play cybersecurity IPO, in September 2021. But the company has since gone on to be acquired by private equity firm Thoma Bravo and merged with Ping Identity in August 2023.