Intel and VMware announced today that Intel Capital is assuming a $218.5
million stake in VMWare. Intel Capital will invest $218.5 million in VMware’s
Class A common stock subject to customary regulatory and other closing
conditions including Hart-Scott-Rodino (HSR) review.
Intel will purchase 9.5
million Class A shares at $23 per share, which, at the completion of VMware’s
forthcoming IPO, will give Intel about a 2.5 percent stake in the
VMware has indicated the price range on its offering: $23-25.
Assuming this pricing is somewhere in the mid-range, the company will raise a
cool $741.4 million. According to bloggingstocks.com this IPO “should be
scorching hot”. You can find the prospectus
at the SEC web site.