VMware rockets; Virtualization hits Wall Street

Update 2: VMware shares closed at $51.

Update 1: As of 11:15 am. EDT, VMware shares were trading at $51, well above the $29 offering price. MarketWatch is reporting that VMware has the best opening of 2007--assuming the current price holds of course.

Shares of VMware topped out at $55.

Original post:

VMware's IPO is ready for lift-off.

Late Monday, the company said that shares of VMware's IPO priced at $29 each. Shares will trade under the ticker VMW.

As previously reported, VMware's IPO is expected to be a hit as one of enterprise technology's hottest technologies--virtualization--takes the spotlight.

Separately, VMware announced the exchange ratio for VMware employees to swap their EMC options for VMware's. One of the big reasons for VMware's IPO was to provide options to recruit talent.

The exchange ratio works out to be 0.611581. In a statement, VMware said:

The exchange ratio is a fraction, the numerator of which is the average of the volume weighted average price per share of EMC stock on the New York Stock Exchange for the final two full trading days prior to August 13, 2007, the expiration date of the exchange offer, and the denominator of which is the initial public offering (IPO) price of VMware Class A Common Stock.