Pivotal Software, a cloud-native app development platform majority-owned by Dell Technologies, raised $555 million in its IPO.
Why it matters: This is further indication that Wall Street will overlook enterprise tech unprofitability, so long as losses are narrowing.
The company priced 37 million shares at $15 (middle of range), for a fully-diluted market cap of around $4.3 billion. It will trade on the NYSE under ticker PVTL, while Morgan Stanley was lead underwriter.
- Other shareholders include Ford Motor Co. and Microsoft.
- Bottom line from Xconomy's David Holley: "Pivotal’s primary software allows the software developers and IT workers at big companies—in particular, companies with antiquated and siloed software development and IT teams—to work more like agile developers, who can use open-source software and public clouds, despite potential concerns about security risks because those resources aren’t private enough."