Rackspace sets pricing for IPO at $21 per share

/ / News

Four years after it went private, Rackspace Technology Inc. late Tuesday announced pricing of its initial public offering: 33.5 million shares of common stock at $21 per share. The shares are expected to begin trading on Nasdaq Global Select Market under the symbol “RXT” on Wednesday. Rackspace expects to receive gross proceeds of approximately $703.5 million from the offering. “We’re in the middle of a tectonic shift to multicloud technology,” company Chief Executive Kevin Jones told MarketWatch in a Zoom interview. “It is the right place, right time for our transformation. We used to compete with hyper-scalers in cloud like Amazon , Google , and Microsoft . Now, we partner with them.” Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., and J.P. Morgan Securities LLC are serving as joint lead book-running managers of the IPO. Rackspace was taken private by Apollo Global Management in a $4.3 billion acquisition in 2016. Last year, Rackspace reported revenue of $2.44 billion and a loss of $102.3 million, compared with $2.45 billion in revenue and a loss of $470.6 million in 2018.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.