VMware IPO Set for Aug. 14

EMC's(EMC Quote) partial spinoff of its VMware division will go public in two weeks, according to MorningNotes.

The initial public offering of 33 million shares in the virtualization software maker will come down Aug. 14 at a range of $23 to $25 each, according to the company.

"I expect it to price higher," said Scott Sweet, managing director at IPO Boutique. "I'd be very shocked, considering the demand for this deal, if it comes at $25." The pricing range is fairly priced, he added.

"I've not heard any more chatter on an IPO since 1999 and 2000" than the buzz that has accompanied VMware, Sweet said.

Helping to drive the interest is the recent news that Intel(INTC Quote) and Cisco(CSCO Quote) have both taken stakes in the company.

"Not only do we have venture capitalists here, but two of the most solid names that can benefit in what VMware offers, wanting to be included in the early stages," Sweet said.

"We feel that this August has the potential to be a hit month" for IPOs, IPO analyst Ben Holmes, of MorningNotes, wrote Monday to clients, noting that "strong deals" such as VMware tend to focus investors on the IPO market. "VMware is, in our opinion, one of the strongest IPOs in registration."

EMC will retain a nearly 90% stake in VMWare. EMC shares closed Monday up 47 cents, or 2.6%, to $18.82.