McAfee raises $620 million in U.S. IPO

In a statement cyber security giant McAfee Corp stated, it has raised $620 million from its initial public offering (IPO) which saw its shares list at $20 per share, well within its target range.

The IPO valued McAfee at $8.6 billion based on total outstanding shares.

As of the end of June 2020, McAfee which was backed by U.S. private equity firms TPG and Thoma Bravo, had a debt of $4.8 billion.

The company had aimed to sell 37 million shares at a target price range of $19-$22 per share.

In 2016, TPG had acquired a majority stake in the company after it purchased Intel Corp’s stake at a deal which valued the company at $4.2 billion, including debt. The following year, Thoma Bravo took a minority stake in the company.

The last few years saw McAfee grow its main cyber security consumer-focused software business, through new partner programs, price hikes and good retention rates.

Earlier this year, it hired former BMC Software CEO Peter Leav as its new CEO to replace Chris Young – McAfee’s founder who created the company by carving it out of Intel.

In 2019 McAfee had reported $2.6 billion with a net loss of $236 million. In the first half of this year, the company reported revenues of $1.4 billion, with a net income of $31 million.

McAfee has stated, it will use a portion of the IPO proceeds to reduce its outstanding debt. Morgan Stanley, Goldman Sachs, TPG Capital BD, BofA Securities and Citigroup were the lead underwriters for its IPO.

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