EMC Corp.'s Vmware raised the target price of its initial public offering to as much as $1.1 billion, making it one of the largest technology IPOs since Google in 2004.
VMware, whose software is used to run computer servers, will sell 33 million shares for $27 to $29 each, according to a regulatory filing on Thursday. The initial target set in July was $23 to $25.
The Palo Alto, California-based company makes programs that let server computers run several operating systems, such as Microsoft Corp.'s Windows Vista, allowing one server to do the work of many machines.
As servers become more powerful, so-called virtualization technology such that offered by VMWare allows companies to get more performance for their investment, letting a single server can perform many more tasks.
Last month, Intel Corp., the world's biggest computer chip- maker, said it would spend $218.5 million for 2.5 percent of VMware's shares. Cisco Systems Inc., the biggest maker of computer-networking equipment, said it will buy $150 million of shares for a 1.6 percent stake.
EMC bought VMware in 2004 for $635 million in the first quarter of 2004. and decided in February of this year to sell 10 percent of the unit.
Citigroup Global Markets, JP Morgan Securities and Lehman Brothers are serving as the lead underwriters for the offering.
VMware plans to list its shares on the New York Stock Exchange under the symbol 'VMW.'