Israeli cybersecurity firm Cato Networks, which achieved a valuation exceeding $3 billion in a private funding round last year, has enlisted underwriters for an initial public offering (IPO) in New York, as indicated by individuals familiar with the matter.
Cato has appointed Goldman Sachs, JPMorgan Chase, and Barclays to spearhead preparations for a stock market debut, anticipated to occur by early 2025, with the possibility of an earlier launch if equity capital markets recover this year, sources disclosed, requesting anonymity due to the confidential nature of the discussions.
Cato aims to secure over $500 million in funding, with one source suggesting the company has yet to finalize its targeted valuation for the IPO.
JPMorgan and Barclays opted not to provide comments, while Cato and Goldman Sachs have not yet responded to requests for comment.
Established in 2015, Cato has amassed more than $770 million in funding, according to PitchBook.
Its latest private funding round last year, led by LightSpeed Venture Partners, raised $238 million, with contributions from investors such as Adams Street Partners, SoftBank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8.
Shlomo Kramer, Cato’s co-founder and CEO, previously co-founded Check Point Software Technologies, presently valued at over $19 billion.
In February, Cato reported a remarkable 59% annual revenue growth in 2023. The company currently serves over 2,200 enterprise clients, including prominent names like Carlsberg and TAG Heuer Porsche Formula E.
The IPO market is exhibiting early signs of recovery, with notable entities like social media platform Reddit also gearing up for public listing.
Market conditions for IPOs have been relatively subdued over the past couple of years due to market volatility and elevated interest rates, causing the postponement of listing plans for several major tech unicorns.
