McAfee, the cybersecurity software company backed by private-equity firms TPG and Thoma Bravo, will again become a public company.
McAfee filed on Monday to raise $100 million through an initial public offering. The $100 million is a placeholder that will likely change with future filings. McAfee did not disclose how many shares it would sell in the IPO or their price range. That will come with future filings.
The offering comes amid a booming market for new stocks—IPOs of software and tech companies in particular. Snowflake (ticker: SNOW), a cloud data management company, priced its IPO at $120 a share earlier this month—and its shares doubled in their debut.
Some other big tech names are set to go public this week. Palantir Technologies, the secretive data analytics company backed by Peter Thiel, will start trading Wednesday in a direct listing. Asana, a cloud-based project management software provider, is also going public on Wednesday in a direct listing.
McAfee, based in San Jose, Calif., plans to trade on the Nasdaq market, under the ticker MCFE. Underwriters on the deal include Morgan Stanley, Goldman Sachs, TPG Capital BD, Bank of America Securities, and Citigroup.
John McAfee founded the company that bears his name in the 1980s. In the 1990s, McAfee software was the industry leader in helping protect consumers and businesses from adversarial threats like hackers. McAfee’s consumer-focused products currently protect more than 600 million devices as of June 27, the prospectus said.
In 2011, Intel (INTC) acquired McAfee, then a publicly traded company, for $7.68 billion. TPG Capital, the private-equity firm, bought a 51% stake in 2017 in a deal valued at $4.2 billion. At the time, TPG, agreed to invest $1.1 billion equity. Thoma Bravo, the technology-focused buyout shop, joined the transaction as a minority investor.
McAfee began operating as a stand-alone company in 2017. The private-equity firms currently own 51% of McAffee, while Intel has 49%, the prospectus said. Shares of Intel were trading 0.6% lower on Tuesday, at $51.11.
McAfee is profitable but highly leveraged. The company reported $31 million in new income for the six months ended June 27 on revenue of $1.4 billion. This compares with $146 million in losses for the six months ended June 29, 2019 on $1.3 billion in revenue. It employed more than 6,850 people globally as of June 2.
The company long-term debt stood at $4.7 billion as of June 27. In the filing McAfee warned that its substantial leverage could hamper its ability to raise additional capital to fund its operations.
An executive for McAfee declined to comment. Both TPG and Thoma Bravo declined to comment. Intel could not be immediately reached for comment.
Write to Luisa Beltran at luisa.beltran@dowjones.com
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Cybersecurity Firm McAfee Is Going Public Again - Barron's
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