EMC's McData unit raises IPO price range to $24-$26
WASHINGTON, Aug 8 (Reuters) - McData Corp., a provider of switches and software for connecting servers and storage systems in a storage area network, on Tuesday raised the price range of its initial public offering of 12.5 million class B shares to $24-$26 a share from $19-$21.
McData, which is expected to debut on Nasdaq this week under the symbol ``MCDT'' (NasdaqNM:MCDT - news), disclosed the new price range in a filing with the Securities and Exchange Commission.
The Broomfield, Colo.-based company, a unit of data storage equipment leader EMC Corp. (NYSE:EMC - news), said it plans to reap net proceeds of about $292 million if the shares go for $25 apiece.
It plans to use the money for general corporate purposes, including repayment of $1.9 million in outstanding debt owed to McData Holdings Corp., a subsidiary of EMC, as well as for capital expenditures and working capital.
EMC holds 86.2 percent of the company's class A stock before the IPO, and will hold 76.1 percent upon completion of the offering, which is being managed by Credit Suisse First Boston, Deutsche Banc Alex Brown and Merrill Lynch. |
