New Issues Ride Out Volatility
online.wsj.com
IPOs Are Expected To Remain Strong; Awaiting VMware
By YVONNE BALL
August 6, 2007;
"But the one investors are expected to be most keen on comes the following week. VMware Inc., a unit of data-storage titan EMC Corp., which helped pioneer the market for virtualization software, is expected to go public Aug. 14.
The VMware deal, which could raise as much as $825 million, is seen as an indicator of the market's health given the buzz the deal has generated.
That is due in part to VMware's swift growth. Revenue soared 82% last year to almost $704 million while net income jumped to $85.9 million, from $66.8 million the previous year.
EMC plans to spin off about 10% of VMware. Investors in the company include Cisco Systems Inc., which recently agreed to invest $150 million, and chip maker Intel Corp., which made a $218.5 million investment.
"VMware is one of the hottest deals this year," Mr. Sweet said. "Based on demand and pre-IPO buildup, it is expected to perform spectacularly well. If it doesn't, then this deal could be a solid indicator that market conditions are really affecting IPOs." |
