McAfee Files For Nasdaq IPO Amid String Of Software Listings

McAfee Corp, on Monday, filed an S-1 form with the U.S. Securities and Exchange Commission for an initial public offering. The California-based cybersecurity company said it intends to list its common stock on the Nasdaq Stock Market under the symbol "MCFE."

The underwriters for the IPO include Morgan Stanley MS, Goldman Sachs & Co LLC GS, TPG Capital BD LLC, Bank of America Securities BAC, and Citigroup Inc C.

What Happened: McAfee’s client base included both business enterprises and governments with 86% of the Fortune 100 companies, 78% of Fortune 500, and more than 61% of Global 200 companies as of June 27, it said in the filing. The company projects that its addressable markets could reach $41.2 billion by 2024 at a four-year compound annual growth rate of 7.9%.

McAfee released select financial metrics for the 26 weeks ended June 27. The company disclosed that its net revenues were $1.4 billion till June 27, compared to $2.6 billion for the fiscal year 2019. In the first 26 weeks, McAfee has generated a net income of $31 million at a net margin of 2.2% compared to a net loss of $236 million in fiscal 2019. The adjusted EBITDA till June 27 was $507 million against $799 for the year 2019.

Why Does It Matter: McAfee's SEC filing for the IPO follows a string of companies like Snowflake Inc SNOW, JFrog Ltd FROG, Unity Software Inc U, and Sumo Logic Inc SUMO finding success in their public listings.

Founded in 1987, McAfee was acquired by Intel Corporation INTC in 2010 for $7.7 billion. In 2016, Intel decided to spin off McAfee for $4.2 billion. Reports of a McAfee public issue were doing the rounds in July last year as well.