McAfee Corp shares fall 7% in Nasdaq debut
Cyber security firm McAfee holds a virtual IPO at NASDAQ Marketsite in the Manhattan borough of New York City, New York, U.S., October 22, 2020. REUTERS/Carlo Allegri
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(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."
The cyber security firm's IPO comes in the wake of strong market debuts from gaming platform Unity Software Inc (NYSE: U) and online prescription drug firm GoodRx (NASDAQ: GDRX).
(Reporting by Ambar Warrick in Bengaluru and Chibuike Oguh in New York; Editing by Shailesh Kuber)
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