Skip to Content

VMware Shares Boom After Dell Technologies Says It Plans to Go Public

Shares of VMware are booming after Dell Technologies said Monday that it’s returning to the public markets.

The data center software giant’s shares were up nearly 10% to $161.17 in midday trading, indicating that investors were pleased with Dell’s decision to go public since going private nearly five years ago.

Dell inherited an 80% controlling stake in VMware when it bought data center technology conglomerate EMC in 2016.

Although Dell plans to trade again on Wall Street, it won’t be doing so via a traditional initial public offering, as Fortune’s Aaron Pressman explains. As part of Dell’s acquisition of EMC, Dell created so-called tracking stock that signified its controlling stake in VMware (VMW).

“Now Dell is proposing to buy out owners of the tracking stock with a combination of cash and a newly issued “C” class of stock in Dell itself,” Pressman writes. “That new stock will trade on the New York Stock Exchange, making Dell again a public company.”

Get Data Sheet, Fortune’s technology newsletter.

Dell Technologies said in February via a regulatory filing that it was either exploring going public again or was planning a possible “business combination” with VMware.