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

Xiaomi has finally launched its Mi Note 2 smartphone in Beijing, China in an eve

For those who can't get too much of OnePlus, here's a whole new range of OnePlus

Sale or no sale, Twitter users are bound to see changes as the beleaguered commu

Vodafone Business Services (VBS), Vodafone India's enterprise arm, has unveiled

Chinese smartphone maker Oppo is all set to launch Oppo R9s along with Oppo R9S

Oppo has launched its latest smartphone in Taiwan, which is named the Oppo A39.

State-run telecom firm BSNL on Thursday signed a strategic business pact with Mi

On Monday, Google?s Threat Analysis Group published details of a critical vulner

Just this Monday Oppo announced auction of a special edition 18K gold version Op

Facebook will allow more content on its platform that it would have earlier remo