Software company VMware Inc. delivered a heady lift to the IPO market Tuesday, gaining 86% on its opening trade.
The company opened at $54 on the New York Stock Exchange according to FactSet, up from its initial public offering price of $29. It sold 33 million shares at the high end of its $27 to $29 price range, which had already been raised $4 a share last week.
The company's preliminary results for the first half of 2007 project total revenue grew 95% to $555.5 million, while net income more than doubled to $75.3 million, compared to the same period a year ago.
Including an overallotment of five million shares that is expected to be sold after the IPO, EMC is selling just a 10% stake in VMware. EMC bought the software company for $625 million in 2004; at its IPO price, the market value of VMware is $10.9 billion [closer to $19B at the moment, and briefly above $20B earlier this morning...].