VMware IPO Price Going Up, Up, Up
We’ve offered several takes in recent weeks on the upcoming VMware public offering and how EMC—which is spinning off about 10 percent of its California “virtualization” subsidiary via the IPO—seems to have hit the perfect storm of timing and opportunity. Well, if you wanted more evidence of how hot the offering is, all that’s necessary is to look to today’s news: Hopkinton, MA-based EMC (NYSE:EMC) reported in an SEC filing that it was hiking the target price for the offering, which is expected to come sometime next week, by a whopping $4 a share.
EMC previously planned to price the stock at between $23 and $25 a share. The new range is $27 to $29. Nice work if you can get it, hiking those prices. EMC is planning to sell up to 37,950,000 shares of VMware in the offering. At the new maximum share price that would bring in a cool $1,100,550,000, meaning the price hike could mean roughly an extra $152 million.