| By Virtualization News |
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| April 29, 2007 02:30 PM EDT |
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EMC subsidiary VMware on Thursday filed its S-1 with the SEC to go public and raise somewhere in the neighborhood of $100 million, a number used just to calculate the registration fee.
VMware, which EMC bought in ‘04 for $625 million, will be offering 10% of its Class A common stock.
Naturally there was no suggestion yet what it would be priced at. And since it’s unclear whether VMware will be on the New York Stock Exchange or the Nasdaq, there’s no ticker symbol yet.
EMC will retain control. It will hold 32.5 million shares of the Class A stock and own all of the 300 million shares of a newly created Class B stock, which gets 10 votes a share to the Class A’s one.
The money raised is meant to go to repay a debt owned to EMC and buy VMware’s headquarters from EMC. The rest will be used for working capital.
EMC reiterated that it expected the IPO to “unlock more of VMware’s value for EMC shareholders,” strengthen VMware’s ability to attract talent and “reinforce EMC’s commitment to VMware’s strategy of platform neutrality.”
VMware earned $87 million last year on $703.9 million in revenues. In 2005 it earned $66.8 million on $387.1 million.
Citi, JPMorgan, Lehman Brothers, Credit Suisse, Merrill Lynch and Deutsche Bank Securities are taking it out.
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