Dell returns to public stock market after years as private company

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Dell finally has returned to the public market on Friday, bringing an end to a long saga that began when CEO and founder Michael Dell took the declining company private in 2013 through a $25 billion buyout with Silver Lake. The next five years, Dell made gains in cloud computing and the enterprise, and the company’s gaming PC division is also a strong performer up till date. The ever growing company opened at $46 on Friday under the NYSE symbol DELL and quickly started trading up.

Recently this year, Dell made it open that it would become a public limited company again through a very complex plan that involved buying back tracking shares for VMware, the software business that Dell owns an 80 percent chunk of. Those shares “were born as part of Dell’s complicated deal to buy EMC a few years ago” according to Business Insider. Activist investor Carl Icahn wasn’t  really happy with Dell’s initial $21.7 billion proposal and at first sued to block the move, only to later drop his protest when Dell sweetened the deal for VMware shareholders.

 

Taking over an existing listed stock allowed Dell to avoid the usual IPO process and questions or pressure regarding the company’s debt. Silver Lake is retaining its 24 percent piece of Dell, according to The Wall Street Journal. Having finally accomplished the goals that convinced him to take Dell private, Michael Dell can now find new investors and equity for the company.

 

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