Cyber security firm McAfee raises $740 million, Prices IPO at $20

The cybersecurity firm McAfee Corp. returned to the market and started trading this week. The company and its shareholders raised $740 million in an initial public offering (IPO), priced at $20 a share.

The security software provider sold 37 million shares of common stock, of which about 31 million were offered by McAfee and 6 million by existing stockholders. Backed by U.S. private equity firms TPG and Thoma Bravo, the IPO valued McAfee at $8.6 billion. As of the end of June, the company also had $4.8 billion in debt.

Morgan Stanley, Goldman Sachs, TPG Capital BD, BofA Securities, and Citigroup are the lead underwriters for the offering. 

The private equity firm TPG had bought a majority stake in McAfee, from Intel, in 2016, while Thoma Bravo took a minority stake in 2017. Post this IPO, TPG, Thoma Bravo, and Intel will control about 82.2% of the voting power. McAfee said it plans to use a portion of the IPO proceeds to pay down part of its outstanding debt.

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