Next Tech IPO: Rackspace Going Public On NYSE
Rackspace is a web hosting company based in San Antonio, Texas. Rackspace is getting ready to have an initial public offer on the NYSE with stock ticket symbol, RAX. Rackspace is opening with 15 million shares at $12.50 per share. Through the IPO, Rackspace will raise about $187.5 million. Goldman-Sachs, Credit Suisse, and Merrill Lynch are book running the IPO.
Norwest Venture Partners and Sequoia Capital own 27.8% of Rackspace combined. Norwest owns 11.6% and Sequoia owns 16.2%. Rackspace wanted to raise $276 million through the IPO, but had to target for a lower price because of the economic conditions.
Rackspace was co-founded by Pat Condon, Dirk Elmendorf, and (Update: see comment #1) Richard Yoo. Some of Rackspace’s partners include Microsoft, Redhat, Dell, Cisco, HP, AMD, VMware, and PCI.@amitchowdhry or on Google+ at +AmitChowdhry