Shares of cloud-based cybersecurity and networking company Cloudflare were priced at $15 a share, $1 a share above its raised range, prepping it to bring in as much as $525 million in its public debut when it begins trading on Friday. 

However, the San Francisco-based company's initial public offering may well be clouded by recent voluntary disclosure of potential U.S. economic and trade sanctions violations. 

Cloudflare, which will begin trading on the New York Stock Exchange on Friday under the symbol " (NET) , first pitched its initial public offering between $10 and $12 a share, which it later increased to $12 to $14.

Cloudflare previously raised $332.1 million as a private company, with its most recent round totaling $150 million in March 2019. The company last had a private valuation of $3.25 billion, according to Crunchbase.

But in an amended prospectus filed with the Securities and Exchange Commission, Cloudflare voluntarily disclosed potential economic and trade sanctions violations to the Treasury Department.

Specifically, the company said its products were used by, or for the benefit of, certain individuals and entities that have been blacklisted by the U.S. A number of the parties made payments to the company in connection with their use of the platform, the amended prospectus said.

"These efforts related to export controls and OFAC sanctions could result in negative consequences for us, including costs related to government investigations, financial penalties and harm to our reputation, the company said in the filing. "The impact on us related to these matters could be substantial."