Dell will soon become a publicly-traded company once again
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Dell, one of the largest U.S.-based computer OEMs, announced its intention to once again become a publicly-traded company. In a press release posted earlier today, the company outlined a plan to convert its Class V shares into Class C common stock and to once again return to the New York Stock Exchange (NYSE). The total market capitalization of the deal is valued at USD $21.7 billion.
Back in 2013, Michael Dell (for whom the company is named) partnered with Silver Lake, a U.S.-based investment firm, to take the computer manufacturer private. However, Michael Dell, who currently owns 72% of the company, thinks the time is right for a return to the public market. In the transfer of stock, Michael Dell will continue to serve as Chairman and CEO of the company, and he and his partners at Silver Lake will continue to retain majority control of the company.
Current stockholders who own Class V can either exchange their shares for Class C common stock (which is more common and readily tradable on open markets like the NYSE) or accept a buyout of $109 per share. The proposed buyout values all shares of the company at $21.7 billion, which is no small amount. For reference, Apple is valued at about USD $915 billion, Amazon at $827 billion, and Alphabet (Google) at $784 billion (according to Symbol Surfing).
Still, Dell is poised to make some major waves in financial markets. The company raked in $79 billion in revenue during its most recent fiscal year. Taking the company public will put Dell in a better position to pay off debts, which is one of the main goals of the decision. Any effects the re-entry into public markets will have on Dell’s computer design and quality are anyone’s guess.