A logo of Dell Technologies is seen at the Mobile World Congress in Barcelona, Spain on February 28, 2018. REUTERS/Yves Herman
(Reuters) – Dell Technologies Inc shares opened at $46 on Friday, giving the computer maker a valuation of $16 billion in the return to the public market, after the redeemed shares linked to her interest in software maker VMware.
The Class C shares were last trading at $46.25, while VMware’s shares rose nearly 2 percent to $157.2.
The tracking stock was tied to an 81 per cent economic interest in VMware and the purchase of the weather allowed Dell to bypass the traditional IPO process, which supposedly involved grilling by investors about the Dell $52.7 billion debt pile.
The company received the necessary approval from the shareholders for the deal at the beginning of December.
Dell went private six years ago in a $24.4 billion acquisition by Silver Lake private equity firm and Microsoft Corp. The deal was financed with the cash flows and equity of the company founder and ceo Michael Dell.
Dell has 17 percent of the global PC market share year-to-date, behind rival HP Inc 23 percent and Lenovo Group Ltd 21 percent, according to data from Canalys.
The company reported a 15% increase in revenue in the last quarter, with sales of products such as desktop pcs, notebooks and tablets, and peripherals, increasing by 11 percent.
Reporting By Aparajita Saxena in Bengaluru; Editing by Shinjini Ganguli