08-10-2007
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TechSpot Member
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Member since: Aug 2007, 88 posts
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VMware Raises Target For IPO
Quote:
VMware raised the target price for its eagerly anticipated initial public offering Thursday, suggesting that demand for the newly minted shares could soar when they start to trade as soon as Tuesday.
The Palo Alto maker of virtualization software, currently owned by storage company EMC, now hopes to raise as much as $1.1 billion, more than any technology company since Google went public in 2004, and could easily spawn the year's hottest IPO as investors lust for a piece of its fast-growing business.
VMware said it anticipates selling its shares to the public at $27 to $29 a share, a 17 percent increase from its previous estimate of $23 to $25 a share, based on the midpoints. Virtualization software lets corporate servers run multiple operating systems and software programs independently of each other, allowing technology managers to squeeze more programs onto a single server and save money by buying fewer machines.
"It certainly does indicate it's a hot issue," said Jay Ritter, a professor of finance at the University of Florida. "The buzz on Wall Street is . . . it will jump at least 20 percent" during its first day on the market.
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Cheers!
Maikeru Hatamoto
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