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IPO Outlook: 
VMware Soars 76% in First-Day Trading
Author: Yordanka Bahchevanska
123jump.com
Last Update: 2:33 PM EDT August 21 2007



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Two new IPOs were launched during the past week. Highly anticipated shares of VMware started trading on Tuesday, and were priced at the high end of the expected range. A hundred and sixty IPOs have been priced so far in 2007 and 57% of them are trading above their offering price. There are no deals scheduled to be priced the following week.

 
A hundred and sixty initial public offerings have been priced so far this year as of Aug 17th, 2007:

- 91 IPOs are currently trading above initial offering price;
- 63 are trading below the offering price;
- and 6 are trading at their offer price.

Two IPOs were priced during the week of August 13th, 2007. There are no deals on deck for the next week.

IPO PERFORMANCE

Software maker VMware Inc (VMW: chart) on Monday priced its offering of 33 million shares at $29 a piece, at the high end of the forecast range, raising about $960 million.

The company increased its estimated pricing range a week ago from the original $23 to $25 a share to the range of $27 to $29 a share.

In addition, the company’s parent EMC Corp. (EMC: chart), the world''s biggest maker of corporate data storage gear, gave the underwriters an option to purchase 4.95 million additional shares.

Citigroup, J.P. Morgan and Lehman Brothers managed the deal.

EMC shares rose 7.5% on Thursday.

VMWare''s shares soared about 76% in their first day of trading Tuesday.

Prior to the VMWare deal, the best performing IPO was Fortress Investment Group (FIG: chart), which boosted 67.6% at its start on February 2007.

The shares ended the week at $55.6, up 92% from the offering price.

Brazilian Cosan Ltd.''s (CZZ: chart) initial public offering in New York and Sao Paulo raised about $1 billion on Tuesday.

The stock priced at $10.50 per share in the United States and 21.05 reais in Brazil.

The deal was scheduled to price on Wednesday, but was delayed to Thursday.

Cosan had previously planned to raise up to $2 billion with the offering, but lowered its expectations to $1.14 billion prior to pricing.

The shares ended the week at $11, up 4.6% from the offering price.
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