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 (NYSE: MS), Goldman Sachs & Co LLC (NYSE: GS), TPG Capital BD LLC, Bank of America Securities (NYSE: BAC), and Citigroup Inc (NYSE: 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 (NYSE: SNOW), JFrog Ltd (NASDAQ: FROG), Unity Software Inc (NYSE: U), and Sumo Logic Inc (NASDAQ: SUMO) finding success in their public listings.

Founded in 1987, McAfee was acquired by Intel Corporation (NASDAQ: 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.