Cyber security company McAfee Corp raises $720 million in US IPO

Cybersecurity firm McAfee Corp sold shares in its initial public offering (IPO) on Wednesday at $20 a piece, within its target range, to raise $ 720 million.

The IPO valued McAfee, backed by U.S. private equity firms TPG and Thoma Bravo, at $8.6 billion based on total outstanding shares. The company also had $4.8 billion in debt as of the end of June.

McAfee had aimed to sell 37 million shares at a target price range of $19-$22 per share. McAfee declined to comment.

TPG acquired a majority stake in McAfee from Intel Corp in 2016, which valued the company at $4.2 billion, including debt. Thoma Bravo took a minority stake in McAfee in 2017.

In the last few years, McAfee has grown its main cybersecurity software business, which focuses on consumers, through price increases, new partner programs, and reasonable retention rates.

Earlier this year, McAfee hired ex-BMC Software CEO Peter Leav as its new chief executive to replace Chris Young, who created the company in its current form by carving it out of Intel.