It should come as no surprise to anyone that VMW's underwriters have exercised their over-allotment option:
VMWare Inc. says IPO underwriters exercise overallotment
Tue Aug 14, 2007 11:35PM EDT
NEW YORK, Aug 14 (Reuters) - Software maker VMware Inc. (VMW.N: Quote, Profile, Research) said late on Tuesday that underwriters of its initial public offering had exercised an overallotment option to buy an additional 4.95 million Class A shares.
The shares, in addition to VMWare's 33-million share offering, are to be bought at the company's IPO price of $29 per share.
VMWare's shares soared about 76 percent in their market debut on Tuesday, gaining $22 to close on the New York Stock Exchange at $51 per share, as investors jumped into what they think is the next big thing in computing: virtualization technology.
Prior to the VMWare offering, the top-performing U.S.-listed IPO was Fortress Investment Group LLC (FIG.N: Quote, Profile, Research), which climbed 67.6 percent on its Feb. 8 market debut.
On Monday, EMC Corp. (EMC.N: Quote, Profile, Research), VMWare's parent and the world's biggest maker of corporate data storage gear, sold 33 million class A shares to the public. That accounts for about 9 percent of the 375 million shares of common stock in VMware.
Underwriters of the offering included Citigroup (C.N: Quote, Profile, Research) JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research), Lehman Brothers (LEH.N: Quote, Profile, Research), Credit Suisse, Merrill Lynch & Co. Inc. (MER.N: Quote, Profile, Research) and Deutsche Bank Securities.
(Reporting by Lilla Zuill, editing by Valerie Lee; +1 646 223 6000; Email: Lilla.Zuill@reuters.com))
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