Canada Pension Plan Investment Board

(CPPIB) is poised to see two of its private equity holdings hit the public market as technology companies take advantage of the appetite for new shares.

Cloud security provider Netskope Inc. is looking to raise as much as US$813 million in an initial public offering (IPO), according to a filing Monday with the U.S. Securities and Exchange Commission. The Santa Clara, Calif.-based company plans to market shares for US$15 to US$17 each.

At the top end of that range, Netskope would have a market value of around US$6.5 billion, based on the number of outstanding shares in the filing. The IPO is expected to price Sept. 17, people familiar with the matter told Bloomberg.

CPPIB

first invested in the company in February 2020 during a fundraising round that valued the company at nearly US$3 billion, and also bought US$50 million of Netskope convertible debt in 2023. Netskope’s products incorporate artificial intelligence models to help companies protect customers from threats and keep sensitive data secure, according to the company’s disclosures.

Canada’s largest public pension manager is also a shareholder of Klarna Group PLC. The financial technology firm is telling investors it expects to price its initial public offering at the top end or above the marketing range of US$35 to US$37 per share, people familiar with the matter told Bloomberg News.

A public debut at the top end of that range would give Klarna a market value of about US$14 billion, based on the filing. That would be about double its valuation in 2022, when CPPIB participated in an US$800 million financing round.

Klarna and Netskope both sit within the pension plan’s “growth equity” portfolio, which primarily includes companies in the technology, biotech and medical tech sectors.

Companies in need of capital are trying to seize on investors’ enthusiasm for new U.S. listings — driven in part by retail traders. This week may turn out to be the busiest of the year for U.S. IPOs, according to data compiled by Bloomberg.

Toronto-based CPP Investment Board, which has $732 billion of assets, notched a one per cent return last quarter.

With assistance from Anthony Hughes.

Bloomberg.com