VMware trades higher

Stephen Withers
Thursday, 16 August 2007 02:54

IT Industry - Listed Tech

VMware shares closed at $US57.71 on Wednesday, a substantial gain on its Tuesday debut at $US50.

The shares were priced at $29 in the IPO, and have therefore almost doubled in value.

A market capitalisation of $US21.65 billion - EMC still owns around 90 percent of WMware - puts the company close behind Adobe's $US23.64 billion. (Adobe shares fell slightly on the day.)

Any concerns at EMC that the IPO [price was set too low will be assuaged by the fact that the company acquired VMware for $US625 million just three years ago.

The parent company's share price also fell slightly from $US18.34 to $US18.14. Prior to the VMware IPO, the stock was trading around $US19.