MONDAY: Cyber security arm of Dell Inc., SecureWorks has been reported to put price range worth $15.50 to $17.50/share over its initial public offering of stock. More speculations refer to the stock being hiking upto $181.1 million as Dell puts in efforts to close a $10 billion financing gap created with its purchasing deal of storage vendor EMC Corp.
It’s worth mentioning that SecureWorks – being one of the important assets of Denali Holding Inc. – is expected to be sold off, as Georgia-based company’s parent company heads off to wrap up $67 billion EMC treaty.
UPDATE: SecureWorks might TRADE on the NASDAQ exchange under the trading symbol SCWX (source: WSJ).
Exclusive data obtained from Marketwatch has cited SecureWorks to be strategizing in selling off 9 million Class A shares alongside 1.4 million shares via a hyper-allotment option, giving *underwriters an opportunity to sell off extra shares under specific circumstances. Similarly, Denali looks ahead to own approx. 70 million shares of Class B stock with its exclusive shares worth 86.1% – i.e. 98% of the ventured electing capability of both stock classes.
For instance, let’s suppose if Class B shares owned by Denali are valued at similar cost as Class A shares, SecureWorks could be valued worth $1.5 billion (upon citing higher range figures).
(*Bank of America Merrill Lynch, Morgan Stanley, Goldman Sachs & Co. and JP Morgan are among the underwriters for SecureWorks’ IPO)
INSIGHT: The company had been targeting a valuation of $2 billion in 2015, but with many of SecureWorks’ rivals TRADING down 20% or below, its valuation expectations had plunged (source: Market Watch). The Wall Street Journal first reported in October that Dell had filed confidentially for listing SecureWorks, which it bought for $612 million in year 2011(source: Reuters). Founded in 1999, SecureWorks has around 4,200 clients in 59 countries now.
