Cyber security firm McAfee Corp sold shares in its initial public offering (IPO) on Wednesday at USD 20 apiece, within its target range, to raise USD 620 million. The IPO valued McAfee, which is backed by US private equity firms TPG and Thoma Bravo, at USD 8.6 billion based on total outstanding shares. The company also had USD 4.8 billion in debt as of the end of June.

Share Market Live

NSE

McAfee had aimed to sell 37 million shares at a target price range of USD 19-USD 22 per share. McAfee declined to comment. TPG acquired a majority stake in McAfee from Intel Corp in 2016 in a deal that valued the company at USD 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 cybersecurity 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 USD 2.6 billion with a net loss of USD 236 million. In the first half of 2020, the company said revenue reached USD 1.4 billion, while net income was USD 31 million.

McAfee said it plans 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.”

Morgan Stanley, Goldman Sachs, TPG Capital BD, BofA Securities and Citigroup are the lead underwriters for the offering.

First Published:Oct 22, 2020 8:33 AM IST