VMware, the leading provider of virtualization software to more than 20,000 organizations, priced its highly anticipated IPO at $29 per share, the top of an upwardly revised $27-$29 range. The 33 million share offering resulted in gross proceeds of $957 million, making VMware the largest pure tech IPO since Google and the 6th largest offering of 2007. At its $29 offer price, VMware commands a market capilization in excess of $11 billion. The company has received a lot of investor attention owing to its leadership position in a rapidly expanding market and huge profitability. EMC, a leading storage systems vendor that purchased VMware back in 2004 at what now appears to be a bargin price of $613 million, continues to hold an 87% stake in the company. Citi, JPMorgan and Lehman Brothers were the lead underwriters on the deal. The stock is scheduled to open for trading on Tuesday morning under the symbol "VMW" on the NYSE.
For more information about the company and its prospects, please view our Featured IPO of the Week write-up.
