According to reports, McAfee, a cyber security company that has received investment from Intel and other private equity institutions , may receive up to $814 million when it goes public this week .
According to reports, McAfee plans to determine the IPO price on October 21 and start trading the next day, which is Thursday, October 22.
Last Tuesday, the San Jose, California-based company confirmed the terms of its initial public offering (IPO). A securities document shows that McAfee will sell 37 million Class A shares at a price of between $19 and $22 per share. The company plans to be listed on the Nasdaq exchange under the ticker symbol MCFE.
A total of 18 institutions will become the underwriters of McAfee’s listing, including Morgan Stanley, Goldman Sachs, TPG Capital, Bank of America Securities, and Citigroup. The underwriter has the right to purchase an additional 5.55 million shares of the company at the IPO price.
The founder of the company is John McAfee (John McAfee), the company was established in the 1980s. In the 1990s, McAfee was an industry leader, helping consumers and businesses avoid cybersecurity incidents such as hacker attacks.
The company’s prospectus shows that as of June 27 this year, more than 600 million units worldwide are using its protection software focused on consumer safety.
In the federal indictment disclosed last week, John McAfee was charged with deliberate tax evasion and underreporting. He has no relationship with McAfee at present.
This IPO is McAfee’s second listing. In 2011, Intel Corporation acquired McAfee for USD 7.68 billion and completed the privatization of it.
In 2017, private equity firm TPG Capital acquired 51% of the company’s shares for US$4.2 billion. In addition, Thoma Bravo, as a secondary investor, also participated in this transaction. In 2017, McAfee began operating as an independent company.
This year, McAfee finally achieved profitability. According to documents submitted by the company, as of June 27, in the first six months of this year, the company had net income of US$31 million and revenue of US$1.4 billion. In the same period last year, the company lost US$145 million and had revenue of US$1.3 billion. As of June 2 this year, the company has more than 6,850 employees worldwide. The company also has a relatively high leverage ratio. As of June 28, its long-term debt amounted to US$4.7 billion.
This IPO will provide liquidity to McAfee shareholders. Intel will sell almost all of its Class A shares, and after the IPO, Intel’s shareholding will drop to 1.8%. The documents show that Intel will hold 68.4% of the company’s Class B shares. TPG will sell approximately 2.2 million Class A shares. Thoma Bravo will also sell 701,456 Class A shares, reducing its shareholding ratio to 12.6%, and the institution will hold 8.2% of McAfee’s Class B shares.
McAfee executives declined to comment on this news. Intel, TPG and Thoma Bravo did not respond to requests for comment.
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