SecureWorks' sorry IPO falls $48m short of aim
This won't help Dell pay for EMC either
In the first initial public offering of the year in the technology sector, Dell's infosec subsidiary SecureWorks has raised much less than expected.
Despite plans to raise $160m with the IPO, Dell has pocketed only $112m after selling eight million shares at $14, merely 70 per cent of its aim.
The squib of an IPO is significant of a cooling in investors' thriftless antics over the last few years, especially in the cyber security market.
SecureWorks is valued at just over $1bn after the deal, though Dell's parent company Denali had reckoned the company was worth $1.42bn earlier this month.
Dell bought SecureWorks for $611m in 2011, and is looking to sell its non-core assets ahead of its planned $67bn acquisition of EMC. Other "non-core assets" for sale are believed to include Perot, Quest Software and SonicWall and Rapid Recovery (formerly AppAssure).
Signals regarding the future of the company won't be apparent until Friday, when its shares will be traded under "SCWX". ®