EMC bought VMware in 2004 for $625m. VMware, which sells virtualization software, late yesterday priced its IPO of 33 million shares priced at $29 each.
The IPO may raise as much as $1bn. About 375 million VMware shares are expected to be outstanding after the IPO. Analysts peg VMware’s market capitalization after the sale as more than $10bn, which would make it one of the world’s biggest public software makers.
EMC will retain about an 86% stake of VMware after the sale.
For its fiscal year ended December 31, 2006, VMware earned $87m on $704m in revenue. The company plans to trade on the New York Stock Exchange using the ticker symbol VMW.
