Round Rock-Based Dell Technologies Inc. Mulling IPO: Report

ROUND ROCK, TX — Dell Technologies Inc. may consider going public as one of several methods being mulled to raise revenue, according to a published report.

The company's board of directors, at its meeting later this month, may discuss launching an initial public offering (IPO) as a way to raise cash, according to a report by Bloomberg. The media outlet cites people familiar with the matter who requested anonymity.

An earlier iteration of the company had traded publicly before California-based private equity firm Silver Lake Partners in 2013 helped founder Michael Dell take Dell Inc. private as part of a $25 billion deal. In 2016, Dell merged with EMC Corp. in a massive $67 billion transaction that boosted the firm's share in the storage technologies industry but burdened it with a substantial debt load — about $46 billion worth, according to Bloomberg's estimates.

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The merger also yielded a big chunk in data-center software vendor VMWare that has seen its shares rise more than 60 percent in the past year, according to the business report. Having VMWare in its portfolio provides another cash-raising option for Dell Technologies short of going public: Buying the remaining outstanding shares of the cloud computing firm, sources told Bloomberg.

Yet another revenue-boosting option presents itself in a potential public share sale for the company's Pivotal Software Inc. cloud computing venture, Bloomberg reported. Bankers have estimated a valuation of Pivotal Software of $5 billion to $7 billion, according to the report.

Dell Technologies Inc. officials were unavailable for comment, Bloomberg said.

>>> Read the full story at Bloomberg

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