McAfee Corp shares fall 7% in Nasdaq debut
(Reuters) - Shares of McAfee Corp (NASDAQ: MCFE) fell 7% in their market debut on Thursday, marking a disappointing opening for the cyber security firm after it raised about $620 million in its initial public offering.
The stock opened at $18.60 per share, compared with its IPO price of $20 per share. At the debut price, the company was valued around $8 billion.
McAfee priced its IPO towards the lower end of its targeted range between $19 and $22 per share.
The offering marks a return to public markets for McAfee, which was bought by Intel Corp (NASDAQ: INTC) in 2011.
It was then turned into a joint venture with TPG Capital in a deal which valued the company at $4.2 billion, including debt. Thoma Bravo took a minority stake in McAfee in 2017.
In the first half of 2020, McAfee's net revenue was $1.4 billion with a net income of $31 million.
"The markets we play in are large, growing and important and we realize there's a great need for what we bring to the table," McAfee Chief Executive Officer Peter Leav told Reuters. "We are going to invest in our fast-growing consumer business and in our enterprise businesses, where there's a need for a broader portfolio."
(Reporting by Ambar Warrick in Bengaluru and Chibuike Oguh in New York; Editing by Shailesh Kuber)