initial public offerings (IPOs) trading on American exchanges

Thursday, October 22, 2020

McAfee (MCFE) began trading on the Nasdaq on Thur 22 Oct 20

  •  The company, based in San Jose, California, was acquired by Intel Corp. in a 2010 deal. In 2016, Intel announced that it had signed an agreement to transfer a 51% stake in McAfee to the investment firm TPG for $1.1 billion. The transaction valued the spun-off company at $4.2 billion, including debt.

  • Current backers listed in McAfee’s prospectus include TPG, Intel, Singapore’s sovereign wealth fund GIC Pte and the private equity firm Thoma Bravo.

  • McAfee (MCFE) prices 37 mln share IPO at $20.00 per share, inside the expected range of $19-22

(Bloomberg) -- McAfee Corp. and its shareholders raised $740 million in an initial public offering priced within a targeted range as the cybersecurity software provider returns to the stock market.

The company and some of its investors sold 37 million shares for $20 apiece Wednesday, according to a statement. McAfee had marketed 31 million shares for $19 to $22, while its shareholders offered 6 million shares.

McAfee is valued in the IPO at about $8.6 billion based on the outstanding shares listed in its prospectus.

Loss to Profit

For the 26 weeks ended June 27, McAfee had net income of $31 million on revenue of $1.4 billion, according to its filings. That compared with a loss of $146 million on revenue of $1.3 billion for the comparable period last year.

The offering is being led by Morgan Stanley, Goldman Sachs Group Inc., TPG Capital BD, Bank of America Corp. and Citigroup Inc. McAfee’s shares are expected to begin trading Thursday on the Nasdaq Global Select market under the symbol MCFE.

The company was founded in 1987 by John McAfee. Since selling to Intel, McAfee has gone through a series of personal legal challenges.

He was a person of interest in a 2012 murder in Belize, though not charged with a crime. Last year, he was detained in the Dominican Republic for entering the country with a cache of firearms and ammunition.

The firearms charges were announced just hours after the U.S. Securities and Exchange Commission sued McAfee for promoting the sale of cryptocurrencies without disclosing that he was being paid to do so. This month, he was arrested on tax-evasion charges for allegedly failing to report that income.

Wednesday, October 21, 2020

Datto Holding (MSP) began trading on the NYSE on Wed 22 Oct 20

  • Vista Equity Partners acquired Datto in 2017 for $1.3 billion and merged the company with Autotask. Vista will own 70.7% of Datto after the IPO, while Austin McChord, Datto’s founder, will have 13%. 

Datto Holding (MSP) priced 22 mln share IPO at $27.00 per share, at the top end of the expected range of $24-27

Datto Holding, a backup-software company backed by Vista Equity Partners, priced at the high end of its initial public offering range, collecting roughly $550 million.

Late Tuesday, Datto sold 22 million shares at $27 each, the top of its $24 to $27 price range. Datto started trading Wednesday on the New York Stock Exchange under the symbol MSP.

Morgan Stanley, BofA Securities, Barclays and Credit Suisse are underwriters on the deal.

Datto is the latest software company to go public. Both Asana(Ticker: ASAN), which offers cloud-based project-management software, and Snowflake(SNOW), a cloud software company, made their debuts in late September. McAfee, the cybersecurity company, is expected to price its offering Wednesday night and begin trading on Thursday.

Founded in 2007, Datto provides business-continuity software, including backup and disaster recovery, that helps companies secure their data. Datto’s software is delivered through a managed-service-provider, or MSP, channel to small and medium-size businesses. The company had 17,000 MSP partners as of June 30, according to its prospectus. Datto said it helped restore more than 200 million software as a service objects in 2020, the prospectus said.

The company reported $10.1 million in profit for the six months ended June 30 on $249.1 million in revenue. This compares with $25.7 million in losses a year earlier on $215 million in revenue. Long-term debt stood at $577 million as of June 30. It has 1,653 employees as of June 30.

With 157,548,740 shares outstanding, Datto has a roughly $4.3 billion market cap, at $27 a share.

Vista Equity Partners acquired Datto in 2017 for $1.3 billion and merged the company with Autotask. Vista will own 70.7% of Datto after the IPO, while Austin McChord, Datto’s founder, will have 13%.

The Datto IPO comes just days since Robert Smith, Vista’s CEO, reached a $140 million settlement with the Justice Department, the Wall Street Journal reported. The nonprosecution agreement ends a yearslong U.S. tax investigation and calls for Smith to admit tax fraud as well as not properly filing foreign bank account reports, according to the Journal. Brian Sheth, Vista’s president and co-founder, is now looking to leave the firm, according to media reports.

Wins Finance (WINS) delisted from Nasdaq

The origins of Wins Finance as a publicly listed company start with Sino Mercury Acquisition Corporation (SMAC), which was formed as a special-purpose acquisition company. SMAC had been established and listed on the Nasdaq in 2014. The intention of forming the shell company was to raise money and serve as a backdoor for a Chinese company in the non-traditional financial sector to become listed in the US. The founders of SMAC were Richard Xu and Brad Reifler. The sole book runner on the IPO was Cantor Fitzgerald.  SMAC's August 2014 IPO on the Nasdaq would raise $40 million.

Wins Finance was the target Chinese company acquired by SMAC in 2015 with the merged entity taking the name of Wins Finance. It would start trading on the Nasdaq in October 2015.

Thursday, October 15, 2020

Array Technologies (ARRY) began trading on the Nasdaq on Thur 15 Oct 20

 Array Technologies (ARRY) opened its first day of trading at $29.50, up 34% from its $22 pricing. 

The solar ground monitoring system provider priced the upsized offering of 47.5M shares a dollar above its prior range.

The offering included 7M shares from Array and 40.5M from a selling shareholder.

Financials: 2019 sales totaled $647.9M (+123% Y/Y) with $39.7M in net income, up from the prior year's $60.8M loss. For H1 2020, revenue was $552.6M (+145%) with $76M net income.

Publicly-traded competitor: Gibraltar Industries (NASDAQ: ROCK), owner of solar racking company RBI Solar.