McAfee, who now runs a bitcoin mining company, says China’s banning of initial coin offerings won’t halt the momentum of cryptocurrencies globally.
Cyber security firm McAfee Corp sold shares in its initial public offering (IPO) on Wednesday at Dollars 20 apiece, within its target range, to raise USD 620 million. Excluding McAfee, they have accounted for 11 per cent of the US$128 billion raised and have climbed 90 per cent from their offer prices on a weighted average basis, according to data compiled by Bloomberg.
McAfee is now publicly listed for the first time since 2010, with Intel taking the firm private for around $7.7bn. McAfee’s shares are expected to begin trading Thursday on the Nasdaq Global Select market under the symbol MCFE.
At that price, McAfee would have a valuation of about $8.6 billion based on the outstanding shares listed in its prospectus, according to Yahoo Finance.
McAfee reemerges in an era where demand is great for software that can protect consumers from viruses and other cybersecurity problems. Cybersecurity stocks, as a whole, have fared well this year. The Global X Cybersecurity ETF is up almost 35% this year.
McAfee Chief Executive Officer Peter Leav said in a phone interview that the company now sees 8,600 threats every minute as well as a 70 per centincrease in mobile malware attempted attacks. That compared with a loss of US$146 million on revenue of US$1.3 billion for the comparable period past year.
However, the company faces challenges, too, evidenced by the fact it’s $4.8 billion in debt.
McAfee also finds itself in a competitive industry that features successful competitors like Norton Lifelock (NLOK). TPG, Thoma Bravo and Intel control 82.2% of the voting power after the IPO. Thoma Bravo took a minority stake in McAfee in 2017.
John McAfee was also charged with fraud by the Securities and Exchange Commission earlier this month for touting cryptocurrency investments to his Twitter followers without disclosing that he was paid to do so. He also ran unsuccessfully in 2016 for the Libertarian party’s presidential nomination.