How McAfee returns to Wall Street

How McAfee returns to Wall Street

Cybersecurity firm McAfee returns to Wall Street and plans to raise $ 740 million in its initial public offering, selling 37 million shares for $ 20 each.

Today, cybersecurity firm McAfee returns to Wall Street.

McAfee's stock will begin trading today , and will return to the US stock exchange after more than ten years. The Santa Clara company is offering 31 million shares while its shareholders will offer 6 million. According to the statement, the offer is expected to close four days later.

Last year McAfee hired Morgan Stanley, Bank of America and Goldman Sachs to prepare the IPO.

As the Financial Times points out , the listing comes during a successful year for IPOs in which companies raised $ 58.4 billion in the United States, according to data provider Refinitiv.


McAfee set the price of its initial public offering on Wednesday at $ 20 per share and will raise $ 740 million from the sale of 37 million shares. At that price, McAfee will be worth $ 8.6 billion. The company will operate on the Nasdaq under the symbol MCFE.


McAfee, founded in 1987 by the namesake John McAfee, was a leader in the PC anti-virus scene in the 1990s. The Californian company is also known for its eccentric founder John McAfee, with whom the company has long since ceased to have anything to do with other than his name.

McAfee was already publicly traded until it was taken over by chip giant Intel in 2010.


In 2010, the semiconductor company Intel , in an attempt to build security features directly into its chips, bought McAfee for $ 7.7 billion. However, Intel changes its plans for McAfee. In 2017, the private equity firm TPG holds a majority stake (66%) in McAfee, with Intel and the private equity firm Thoma Bravo remaining with minority stakes.

Meanwhile, in 2016, John McAfee sued Intel for the right to use his name in a new business, which was only settled in 2018.


As CNN reports, McAfee posted sales of $ 1.4 billion for the first six months of 2020, up nearly 9% from a year ago. It also made a small profit in the first two quarters after losing money in the same period in 2019.

But McAfee also faces some major challenges. The company has a $ 4.7 billion debt hole. The Santa Clara company said it plans to use about $ 525 million of IPO proceeds to reduce some of that debt load.

McAfee operates in a highly competitive business, competing with established rivals such as Norton Lifelock, Trend Micro, Broadcom-owned Symantec and Palo Alto Networks.

This is a machine translation from Italian language of a post published on Start Magazine at the URL on Thu, 22 Oct 2020 05:56:33 +0000.