McAfee’s IPO Raises $740 Million in Return to Public Market

Photographer: David Paul Morris/Bloomberg

McAfee Corp. and its shareholders priced an initial public offering within a targeted range in the company’s return to the stock market, according to people with knowledge of the matter.

The cybersecurity software provider and some of its investors sold shares on Wednesday for $20 each after marketing them for $19-22, said the people, who asked not to be identified because the information wasn’t public yet. Thirty-seven million shares were sold, raising $740 million, one of the people said.

McAfee, which was acquired by Intel Corp. in a 2010 deal, had marketed 31 million shares while its shareholders offered 6 million.

At $20 a share, McAfee would be valued at about $8.6 billion based on the outstanding shares listed in the prospectus.

A representative for McAfee didn’t have an immediate comment on the pricing.

In 2016, Intel announced that it had signed a deal to transfer a 51% stake in McAfee to the investment firm TPG for $1.1 billion. The transaction valued the spun-off company at $4.2 billion, including debt.

Current backers listed in MacAfee’s prospectus include TPG, Intel, Singapore’s sovereign wealth fund GIC Pte and the private equity firm Thoma Bravo.

The offering is being led by Morgan Stanley, Goldman Sachs Group Inc., TPG Capital, Bank of America Corp. and Citigroup Inc. McAfee’s shares are expected to begin trading Thursday on the Nasdaq Global Select market under the symbol MCFE.