McAfee returns to the public market, with stock stumbling 7% at the open

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Shares of McAfee Corp. stumbled out of the gate Thursday, as the first trade was 7.0% below the initial public offering price. The profitable security-software company’s IPO priced late Wednesday at $20 a share, which was at the lower end of the expected range of between $19 and $22. The company sold 30,982,558 shares in the IPO to raise $619.7 million, and selling shareholders sold an additional 6,017,442 shares. The stock’s first trade was a $18.60 at 11:53 a.m. Eastern for about 4.1 million shares. The stock has since pared some losses to trade 5.6% below the IPO price. The company has returned to the public markets at a time of relatively strong investor demand for IPOs, as the Renaissance IPO ETF has run up 24.6% over the past three months, while the S&P 500 has gained 4.8%.
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