New York (CNN Business)Cybersecurity company McAfee is set to make its return to Wall Street on Thursday.
McAfee priced its initial public offering late Wednesday at $20 a share and will raise $740 million from the sale of 37 million shares. At that price, McAfee will be worth $8.6 billion. The company will trade on Nasdaq under the ticker symbol MCFE.
McAfee was a public company before Intel (INTC) bought it for $7.7 billion in 2011. The McAfee name was dropped a few years ago but then reinstated after Intel sold a majority stake in it to private equity firm TPG, which now owns nearly 66% of McAfee.
McAfee re-enters life as a standalone firm at a time when demand is strong for software to protect consumers and businesses from viruses, ransomware, spyware, phishing, identity theft and other cybersecurity problems.
Earlier this year, McAfee brought on a tech industry veteran as CEO: Peter Leav, who previously ran tech firms BMC Software and Polycom.
McAfee reported sales of $1.4 billion for the first six months of 2020, up nearly 9% from a year ago. It also eked out a small profit in the first two quarters after losing money in the same period of 2019.
Intel could benefit from the IPO, too. The chip giant still has a 7% stake in McAfee and will be selling some its shares as part of the offering. Venture capital firm Thoma Bravo and Singapore’s sovereign wealth fund, GIC, also have big stakes in McAfee and each will be selling only a small portion of their shares.
The company has kept the McAfee name even though founder John McAfee, who was recently arrested in Spain and indicted for tax evasion charges by the US, is no longer with the firm.
Source: Read Full Article