Dell Cyber Security Unit Valued at up to $1.42 Billion

Dell Inc's cyber security unit, SecureWorks Corp, could be valued at up to $1.42 billion in its initial public offering, the first major US listing of a technology company this year. Atlanta, Georgia-based SecureWorks on Monday said its offering was expected to be priced at $15.50-$17.50 per Class A share, raising as much as $157.5 million. The share issue market worldwide plunged to a seven-year low in the first quarter, more than halving from a year earlier to $106.6 billion, as worries over slowing economic growth kept investors wary, according to Thomson Reuters data. "From such a low base, there's only one way to go and that's up," Jay Ritter, an IPO expert and a professor of finance at University of Florida, told Reuters.
"I don't expect that there's going to be a flood of IPOs, but they will be an increasing number of companies in a variety of industries that will go public."
In the past few years, several cyber security firms such as FireEye Inc, Rapid7 Inc and Mimecast Ltd have gone public to take advantage of growing investor interest in them after a spate of hacking attacks on companies including major banks and retailers. However, shares of Rapid7 and FireEye, which popped 70-80 per cent in their debut, are now trading way below their IPO prices. Mimecast, which jumped 20 per cent on its listing day, has also slipped below its offering price. Mr Ritter warned against premium pricing for stocks of cyber security firms, saying that these companies were fighting for market share, which would keep their profit growth muted. The Wall Street Journal first reported in October that Dell, the third-largest personal computer maker, had filed confidentially for listing SecureWorks, which it bought for $612 million in 2011. Founded in 1999, SecureWorks has 4,200 clients in 59 countries. The company said it planned to list its Class A common stock on the Nasdaq under the symbol 'SCWX'. Bank of America Merrill Lynch, Morgan Stanley, Goldman Sachs & Co and JP Morgan are among the underwriters for SecureWorks' IPO.

Related posts

Latest News

The tablet market shrank in the recently-ended quarter, as shipments of bargain-

Qualcomm made news this week with its launch of a 5G modem, the Snapdragon X50.

Sony has launched the new KD-65Z9D 4K HDR TV in India, with a price tag of Rs. 5

The latest developments surrounding the consumer-electronics show in Las Vegas k

Microsoft Corp said on Tuesday that a hacking group previously linked to the Rus

Apple has apologised to a customer it refused to give a refund to unless he coul

WhatsApp is preparing a major update to align with the public launch of Apple iO

The Events app tailored for iPhones hit Apple's online shop, with a version "com

Google on Monday announced it was rolling out improved detection and filtering m

Xiaomi recently launched its Mi Note 2 smartphone with a dual-curved display, al