McAfee Corp shares fall 7% in Nasdaq debut

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(Reuters) - Shares of McAfee Corp MCFE.O fell 7% in their market debut on Thursday, marking a disappointing opening for the cyber security firm after it raised about $620 million in its initial public offering.

The stock opened at $18.60 per share, compared with its IPO price of $20 per share. At the debut price, the company was valued around $8 billion.

McAfee priced its IPO towards the lower end of its targeted range between $19 and $22 per share.

The offering marks a return to public markets for McAfee, which was bought by Intel Corp INTC.O in 2011.

It was then turned into a joint venture with TPG Capital in a deal which valued the company at $4.2 billion, including debt. Thoma Bravo took a minority stake in McAfee in 2017.

In the first half of 2020, McAfee’s net revenue was $1.4 billion with a net income of $31 million.

“The markets we play in are large, growing and important and we realize there’s a great need for what we bring to the table,” McAfee Chief Executive Officer Peter Leav told Reuters. “We are going to invest in our fast-growing consumer business and in our enterprise businesses, where there’s a need for a broader portfolio.”

The cyber security firm's IPO comes in the wake of strong market debuts from gaming platform Unity Software Inc U.N and online prescription drug firm GoodRx GDRX.O.

Reporting by Ambar Warrick in Bengaluru and Chibuike Oguh in New York; Editing by Shailesh Kuber