Cyber security firm McAfee
Corp sold shares in its initial public offering (IPO) on Wednesday at $20 a
piece, within its target range, to raise $620 million.
(Reuters) - Cyber
security firm McAfee Corp sold shares in its initial public offering (IPO)
on Wednesday at $20 apiece, within its target range, to raise $620 million.
The IPO valued McAfee,
which is backed by U.S. private equity firms TPG and Thoma Bravo, at $8.6
billion based on total outstanding shares. The company also had $4.8 billion in
debt as of the end of June.
McAfee had aimed to sell 37
million shares at a target price range of $19-$22 per share. McAfee declined to
comment.
TPG acquired a majority
stake in McAfee from Intel Corp in 2016 in a deal which valued the company at
$4.2 billion, including debt. Thoma Bravo took a minority stake in McAfee in
2017.
In the last few years, McAfee
has grown its main cyber security software business, which focuses on
consumers, through price increases, new partner programs and good retention
rates.
McAfee earlier this year
hired ex-BMC Software CEO Peter Leav as its new chief executive to replace
Chris Young, who created the company in its current form by carving it out of
Intel.
McAfee has said its revenue
in 2019 was $2.6 billion with a net loss of $236 million. In the first half of
2020, the company said revenue reached $1.4 billion, while net income was $31
million.
McAfee said it plans use to
use a portion of the IPO proceeds to pay down part of its outstanding debt.
Shares in McAfee are due to
begin trading on the Nasdaq on Thursday under the symbol "MCFE."
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