Cybersecurity firm McAfee Corp. is holding its initial public offering (IPO) today (October 22).
The company has sold shares in its IPO at $20 a piece, within its target range, to raise $620 million. The IPO values McAfee, which is backed by U.S. private equity firms TPG and Thoma Bravo, at $8.6 billion based on total outstanding shares.
McAfee had aimed to sell 37 million shares at a target price range of $19 to $22 per share.
TPG acquired a majority stake in McAfee from Intel Corp. in 2016 in a deal that valued the company at $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 cyber security software business, which focuses on consumers, through price increases, new partner programs and good retention rates. McAfee has said its revenue in 2019 was $2.6 billion with a net loss of $236 million. In the first half of 2020, the company said revenue reached $1.4 billion, while net income was $31 million.
McAfee said it plans use to use a portion of the IPO proceeds to pay down part of its outstanding debt. The company had $4.8 billion in debt at the end of June.
Morgan Stanley, Goldman Sachs, TPG Capital BD, Bank of America Securities and Citigroup are the lead underwriters for the share offering. Shares in McAfee are due to begin trading on the Nasdaq stock exchange on Thursday under the ticker symbol "MCFE."
