VMware IPO Price Going Up, Up, Up

We’ve offered several takes in recent weeks on the upcoming VMware public offering and how EMC—which is spinning off about 10 percent of its California “virtualization” subsidiary via the IPO—seems to have hit the perfect storm of timing and opportunity. Well, if you wanted more evidence of how hot the offering is, all that’s necessary is to look to today’s news: Hopkinton, MA-based EMC (NYSE:EMC) reported in an SEC filing that it was hiking the target price for the offering, which is expected to come sometime next week, by a whopping $4 a share.

EMC previously planned to price the stock at between $23 and $25 a share. The new range is $27 to $29. Nice work if you can get it, hiking those prices. EMC is planning to sell up to 37,950,000 shares of VMware in the offering. At the new maximum share price that would bring in a cool $1,100,550,000, meaning the price hike could mean roughly an extra $152 million.

Author: Robert Buderi

Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative. Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.