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Update: VMware rose as much as 90 percent in its first day of trading, valuing the company at over $20 billion. — via Bloomberg. Tuesday morning is a big moment for VMware and for virtualization technology in general. The company, a spin-off of EMC, will start […]

Update: VMware rose as much as 90 percent in its first day of trading, valuing the company at over $20 billion.via Bloomberg.

Tuesday morning is a big moment for VMware and for virtualization technology in general. The company, a spin-off of EMC, will start trading Tuesday morning on the New York Stock Exchange under the symbol VMW, and has been priced at $29 per share.

With 33 million shares on offer, VMware plans to raise close to a billion dollars from the public markets. That should value the company at over $10 billion. EMC will still own around 90% of VMware.

VMware had initially planned to raise around $750 million, but the demand for this offering has been strong. The company will spend about $127 million of the total proceeds to buy its headquarters from parent EMC and will also pay another $350 million to EMC to pay off as debt.

Palo Alto-based VMware’s virtualization software reduces energy consumption in data centers, by allowing servers to run more applications on less hardware. VMware says energy cost savings can be $500-600 per server per year.

The potential money saved by cutting down on data center energy consumption could reach $4 billion annually in the U.S., according to a report out earlier this month from the Environmental Protection Agency. Cisco Systems and Intel Corp., are both investors in VMware, indicating their faith in VMware solving some of the current problems of energy consumption being faced by the data center industry.

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