Cybersecurity Software Firm McAfee Files for Nasdaq IPO
McAfee is adding to the roster of companies rushing to cash in on a hot market for U.S. initial public offerings.
(Bloomberg) -- Cybersecurity software maker McAfee Corp. has filed to go public, adding to the roster of companies rushing to cash in on a hot market for U.S. initial public offerings.
The San Jose, California-based company listed the size of the offering as $100 million in a filing Monday with the U.S. Securities and Exchange Commission. The amount is a placeholder that will likely change.
McAfee’s planned offering is part of a software IPO boom this year. The biggest listing for an operating company on a U.S. exchange is software maker Snowflake Inc., which raised $3.86 billion including so-called greenshoe shares this month.
Software companies account for $12.8 billion of the $102 billion raised this year on U.S. exchanges, according to data compiled by Bloomberg. Shares of those newly public software companies have gained 78% on an weighted average basis, the data show.
Intel, TPG
McAfee was previously a unit of Intel Corp. which bought the software maker in a $7.7 billion deal that closed in 2011.
The chipmaker argued that security was becoming increasingly important to computer users and that integrating security functionality into its processors would add to their value. That high-level justification for the purchase was never translated into practical applications which enhanced Intel’s main business. The unit continued on primarily as a retail software vendor not connected tightly to its parent’s offerings.
In 2016, Intel announced that it had signed a deal to transfer a 51% stake in the business to TPG for $1.1 billion. The transaction valued the spun-off company at $4.2 billion, including debt. TPG and Thoma Bravo are listed as McAfee’s backers in Monday’s prospectus.
For the 26 weeks ended June 27, McAfee had a profit of $31 million on revenue of 1.4 billion, according to its filing. The company said it lost $146 million on revenue of $1.29 billion during the comparable period last year.
Morgan Stanley, Goldman Sachs Group Inc., TPG Capital, Bank of America Corp. and Citigroup Inc. are leading the share sale. McAfee plans to list on Nasdaq Global Select Market under the symbol MCFE.
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