VMware shares rocket in hottest tech debut since Google

Shares of software maker VMware Inc. soared 84 percent on Tuesday, valuing the company at about $20 billion in the biggest technology trading debut since Web search leader Google Inc. went public in 2004.

Wall Street expectations had run high as data storage equipment maker EMC Corp. prepared to sell about 10 percent of its stake in VMware. The IPO that priced on Monday lived up to the anticipation as VMware managed to evade the gloom of the broader financial markets.

Investors clamored to get in on what analysts expect will be the next big thing in computing - a technology known as virtualization. As of midday on Tuesday, VMware's market value ranked it among the top 10 software makers.

VMware is the dominant provider of software using that technology. One of its key uses is that it lets companies run several "virtual" machines on a single computer to reduce hardware and other costs.

Its shares rose to $53.35 in midday trade on the New York Stock Exchange, up from Monday's IPO price of $29.

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