Spotify did not sell any new shares or raise any money from the activity. Similarly, the Swedish music streaming company Spotify’s offer to publicly list its stock in April 2018 also did not qualify as an IPO, considering the fact that the company just let existing shareholders start trading their stock on an exchange. It is merely exchanging one kind of stock for another. However, Dell is not selling any new shares or raising any money. The “offering” is the sale of shares to the public to raise money and either pay off prior investors or support the company’s funds. The new stock will now be traded on the New York Stock Exchange, suggesting that Dell is once again becoming a public company.ĭoes Dell’s new publicly traded stock mean an IPO?Īn IPO, or initial public offering, is not simply the listing of a company’s stock for public trading. At present, Dell is proposing to buy out owners of the tracking stock with a combination of cash and Dell’s own newly issued class of stock. Payments were made to EMC shareholders partly in cash and partly with a new stock representing the controlling stake in VMWare. The acquisition of EMC by Dell is one of the largest-ever acquisitions in the technology sector.Īfter acquiring EMC, Dell incurred an enormous debt burden. In 2016, when Dell acquired enterprise storage business firm EMC in a cash-and-stock deal valued at US$67 billion, it also acquired EMC’s approximately 80% majority stake in cloud computing and platform virtualization software and services company VMware. Additionally, the company leans heavily on its 2016 acquisition of EMC and its software unit, VMWare. However, Dell’s return is far more complex than previously anticipated considering that there will not be an initial public offering. During the last five years, post privatizing, the company’s stock price dropped 31%, resulting from falling personal computer sales, the upswing in mobile computing technology, and the onset of the cloud computing revolution, which negatively impacted Dell’s sales and profits.ĭell had initially stated that once its recovery was in progress, it would go public once again. In 2013, Dell Technologies decided to go private in a US$24 billion leveraged buyout led by private equity firm Silver Lake Partners and Dell Technology founder Michael Dell.
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