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Cloud hosting services provider Rackspace sets terms for $754 million IPO

July 27, 2020

Rackspace Technology, a leading cloud hosting services provider, announced terms for its IPO on Monday.

The San Antonio, TX-based company plans to raise $754 million by offering 33.5 million shares at a price range of $21 to $24. At the midpoint of the proposed range, Rackspace Technology would command a fully diluted market value of $4.8 billion and an enterprise value of $8.0 billion.

Acquired by Apollo Global Management (NYSE: APO) in 2016, Rackspace designs, builds, and operates customers' cloud environments across all major technology platforms, irrespective of technology stack or deployment model. The company served over 120,000 customers across 120 countries in 2018 and 2019, including more than half of the Fortune 100.

Rackspace Technology was founded in 1998 and booked $2.5 billion in revenue for the 12 months ended March 31, 2020. It plans to list on the Nasdaq under the symbol RXT. Goldman Sachs, Citi, J.P. Morgan, RBC Capital Markets, Evercore ISI, Barclays, BMO Capital Markets, Credit Suisse, Deutsche Bank, and HSBC are the joint bookrunners on the deal. It is expected to price during the week of August 3, 2020.