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Business Week: Red Hat Rides Roughshod to IPO Fame

“More than 30 IPOs had been set to go off this week, but so far
6 companies, including Women.com, Garden.com, and Advanstar have
shelved their plans indefinitely, and at mid-week it looks like
only half of all expected IPOs will actually make it onto the
market by Friday.”

“Red Hat provides Linux-related services and tools to businesses
using Linux, an open-source operating system that is making inroads
as a viable alternative to Microsoft’s Windows NT System.”

“Intel Corp. has taken a more direct involvement. It
holds what amounts to about 4.5 percent of the
company’s shares post-IPO.
Other principal stockholders
include the Boston-based Greylock IX Limited Partnership and Menlo
Park, CA-based Benchmark Capital, which hold stakes of 13 percent
and 9 percent, respectively.”

The Red Hat executives who stand to profit most from
the IPO are company CEO Robert Young, 45, and Marc
Ewing
, 30, the company’s chief technology officer, each of
whom owns roughly 9.1 million shares in the company. Their 14
percent stakes are worth about $470 million at today’s closing
price.”

Complete
Story

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