Rackspace intends to raise $100 million in gross proceeds from an IPO of its common stock, although the final amount may differ. Rackspace shares jumped 10.5% to $21.35 in Monday’s regular session, on a day the Dow Jones … The IPO bucks the current trend of powerful appetite as the novel coronavirus outbreak drives companies to operate and rely on cloud computing to get more of their efficiencies. Earlier this week, however, Rackspace’s shares rose as reports surfaced that Amazon is considering scooping up a minority stake in the company. ET by Tomi Kilgore Amazon in talks to invest in cloud-services company Rackspace: report Rackspace Technology has priced its IPO of 33.5M common shares at $21/share, for gross proceeds of ~$703.5M (~$809M if the underwriters exercise their option). Rackspace is planning to use some of the $700 million it raised from the IPO to pay off the debt. The multi-cloud slinger priced the US IPO at $21 per share – the lower end of the marketed $21-$24 range, listing 33.5 million shares. All quotes delayed a minimum of 15 minutes. In 2019, Rackspace reported revenue of $2.44 billion and a net loss of $102.3 million. In 2019, Rackspace reported revenue of $2.44 billion and a net loss of $102.3 million. Rackspace IPO prices at low end of target range Posted by Rob Phillips August 5, 2020 Reading Time: 2 minutes Cloud solutions firm Rackspace Technology sold shares in its IPO on Tuesday at $21 per share, the lowest end of its target range, to raise $703.5 million, the company said. See here for a complete list of exchanges and delays. Rackspace Technology Inc., the cloud-service provider backed by Apollo Global Management Inc., fell 20% at the opening bell in its trading debut after … Shares in Rackspace, which was publicly listed before being bought by Apollo, are due to begin trading on the Nasdaq on Wednesday under the symbol “RXT.”. “Today’s day one,” Jones said in an interview. have seen their share prices more than double since going public earlier this year. Trading performance analysis for RXT stock. The company lost about 60% of its value. Purchase SWOT analysis reports on thousands of companies and dot-com properties and have them delivered direct to your inbox in two business days. To order multiple SWOT reports, industry updates, or custom reports please: Join today and benefit from a discount of upto 33% on our advisory services. It began trading on the Nasdaq under the ticker RXT. In 2013, shares traded around $80. Initial reporting via our content partners at Thomson Reuters. Should the IPO prove to be as successful as one would hope, 33.5 million shares at an IPO price of $21 should bring proceeds of approximately $703.5 million. Our R&A reports are available on-demand, with a two working day turnaround schedule. Our Standards: The Thomson Reuters Trust Principles. To stay on top of the latest developments across the platform economy and gain access to our problem-solving tools and content sets, you can become a member for just $7 per month. The company said it plans to … Two US state Attorney Generals seek info on Zoom's privacy practices, For cloud giants, usage soars but tech investment delays hobble revenue growth, Flipkart and PhonePe have room for other investors, Walmart CEO says, Google, adtech firms hit with fresh EU privacy complaints, Uber asks US states to prioritize its drivers for COVID-19 vaccine, Grab expands finance business with consumer loans services and wealth management, A guide to Europe’s coronavirus contact tracing apps. The IPO bucks the recent trend of strong appetite from investors for cloud computing companies as the novel coronavirus outbreak drives more businesses to operate digitally and rely on cloud computing for more of their workflow. Rackspace IPO: More Details. Rackspace Technology has filed a registration statement on Form S-1 with the Securities and Exchange Commission for an initial public offering. The multicloud managed service provider raised $704 million, but it saw the per-share price of its stock fall from the price it set at $21 to $16.17, a drop of about 20%. The shares were indicated to open as low as $16, sharply below the IPO price. Cloud solutions firm Rackspace Technology sold shares in its IPO on Tuesday at $21 per share, the lowest end of its target range, to raise $703.5 million, the company said. Goldman Sachs & Co, Citigroup Global Markets and JP Morgan Securities are among the underwriters for the IPO. Cloud services firm Rackspace Technology Inc sold shares in its initial public offering (IPO) on Tuesday at $21 per share, the bottom end of its target range, to raise $703.5 … The stock has since crawled back to the IPO price. Rackspace Technology started at buy with $26 stock price target at Deutsche Bank Aug. 31, 2020 at 6:44 a.m. Other cloud companies such as Ncino Inc NCNO.O and Kingsoft Cloud Holdings Ltd KC.O have seen their share prices more than double since going public earlier this year. Reporting by Joshua Franklin in Boston and Greg Roumeliotis in New York. The IPO valued San Antonio, Texas-based Rackspace, which is owned by private equity firm Apollo Global Management. Rackspace held its first IPO in August 2008 when it raised $187.5 million in a modified Dutch auction. Rackspace Technology’s first day of trading Wednesday as a public company saw its share of ups and downs. The company had aimed to sell 33.5 million shares at a target price range of $21-$24 per share. Sign-up for our daily newsletter to receive all the latest platform news, industry insight and start-up tips delivered direct to your Email inbox. Twelve years after first going public, Rackspace Technology has returned to the NASDAQ with more of a whimper than a bang. Using a basic share count and the top end of their initial ranges, Rackspace is targeting a roughly $4.8 billion valuation, and BigCommerce a $1.3 billion price tag. The Rackspace IPO offered 33.5 million shares at $21, the low end of its price range of $21 to $24. San Antonio-based Rackspace expects to price its stock at $21 to $24 per share on the Nasdaq Stock Market under the symbol "RXT," the company said Monday. Rackspace raised $187.5 million. In a regulatory filing last month, Rackspace said it was looking to price the shares between $21 and $24 per share. Access all content and take advantages of our proprietary features, data and exclusive benefits. But three years later, Rackspace started to struggle. A further 5.025 million shares will later be offered to underwriters at the IPO price, with the whole exercise yielding gross proceeds of approximately $703.5m to $804.0m. Rackspace sold 33.5 million shares in its IPO at the bottom end of its target range of $21 to $24 per share, valuing the company at $4.18 billion, excluding debt. Please check your Email to confirm your subscription. … (Reuters) - Cloud services firm Rackspace Technology Inc. sold shares in its initial public offering (IPO) on Tuesday at $21 per share, the bottom end of its target range, to raise $703.5 million, the company said. The Price to Book ratio for the last quarter was 2.73, with the Price to Cash per share for the same quarter was set at 1.29. After going private in 2016 after accepting a $32 per share, or $4.3 billion, price from Apollo Global Management, Rackspace is looking once again to … Please enter your username or email address. Other cloud companies such as Ncino and Kingsoft Cloud Holdings have seen their share prices more than twice since going public earlier this season. What to Expect from the Upcoming Rackspace IPO in 2019? Telephone: +1 (646) 801 2919Email: sales@platformexecutive.com. Cloud hosting services provider Rackspace Technology Global (RXT) will price its IPO of 33.5M shares on August 5 in an expected range of $21 to … Shares in Rackspace, that was publicly recorded before being purchased by Apollo, are expected to start trading on the Nasdaq on Wednesday under the symbol “RXT.”. The organisation had aimed to sell 33.5 million shares at a target cost range of $21-$24 per share. It has raised $704m, the vast majority of which will be used to pay down debts owed to its private equity backer. Rackspace officially filed with the SEC for an IPO of its common stock on the Nasdaq, under the ticker RXT, after going private in 2016. Rackspace Technology has revealed the terms of its planned return to the stock market. The company will sell 33.5 million shares and expects punters to pay between $21 and $24. It … You will receive a link to create a new password via email. The San Antonio, TX-based company plans to … R ackspace Technology, a leading cloud hosting services provider, announced terms for its IPO on Monday. Rackspace has historically leased server space and helps corporations store and access data in the cloud and in recent years has expanded its business to include multicloud services. SAN ANTONIO – August 4, 2020 – Rackspace Technology, Inc. (“Rackspace Technology”) today announced the pricing of its initial public offering of 33,500,000 shares of its common stock at an initial public offering price of $21.00 per share. The IPO valued the Texas-based Rackspace, which is owned by private equity firm Apollo Global Management, at some $4.18 billion, excluding debt. (Reuters) - Cloud services firm Rackspace Technology Inc RXT.O sold shares in its initial public offering (IPO) on Tuesday at $21 per share, the bottom end of its target range, to raise $703.5 million, the company said. Rackspace raised $704 million in its public offering Wednesday after pricing the 33.5 million shares it sold at $21 per share, on the low range of its $21 to $24 per share guidance range. Goldman Sachs & Co, Citigroup Global Markets and J.P. Morgan Securities LLC are among the underwriters for the IPO. Rackspace stock traded on the NYSE under the ticker symbol RAX. The offering included 15 million shares at $12.50 per share. Rackspace helps corporations store and access data in the cloud and in recent years has expanded its business to include services and has leased server space. Rackspace Technology Inc. [RXT] gain into the green zone at the end of the last week, gaining into a … As Jeff Bezos and Co. look to take advantage of the depressed price of 2020’s worst IPO, it’s worth asking why retail investors have been so uninterested in the company. The number of shares set to be sold, and the price range, have yet to be determined - but the company is thought to be looking to raise around $100m. Management says it will use the net proceeds from the IPO … The company had been exploring an IPO for the last two years, but its weak organic growth and large debt, accumulated due to its $4.3 billion leveraged buyout by Apollo in 2016 and subsequent acquisitions, had stopped it from pursuing it. The IPO valued San Antonio, Texas-based Rackspace, which is owned by private equity firm Apollo Global Management APO.N, at $4.18 billion, excluding debt. Apollo Global Management acquired Rackspace Hosting for $4.3 billion in 2016 and took the business private.. After multiple acquisitions coupled with organic growth, the hosting company has evolved into Rackspace Technology — a multi-cloud MSP that supports AWS, GCP, Azure and plenty of additional cloud and security services. In 2008, a Rackspace IPO hit the market. As investors continue to warm to the cloud computing market, Rackspace has announced details of its Initial Public Offering (IPO) coming in at the low-end of the target range. The company went public in 2008 with an IPO that raised $187.5 million. The team at Platform Executive hope you have enjoyed this news article. The IPO valued San Antonio, Texas-based Rackspace, which is owned by private equity firm Apollo Global Management APO.N, at $4.18 billion, excluding debt. And take advantages of our proprietary features, data and exclusive benefits are available,! J.P. Morgan Securities are among the underwriters for the IPO when it raised $ 187.5 million in proceeds... It will use the net proceeds from an IPO of its common stock, although the final amount differ! All the latest Platform news, industry insight and start-up tips delivered direct to your Email.! Revealed the terms of its planned return to the Nasdaq with more of a whimper than bang... Editing by Jonathan Oatis, Aurora Ellis and Himani Sarkar, industry insight and start-up tips delivered direct to inbox. A link to create a New password via Email and expects punters to pay between 21... One, ” Jones said in an interview shares were indicated to open as low as 16. For the IPO … the stock market all content and take advantages of our proprietary features, data and benefits... Of ups and downs 21, the low end of its common stock although... Ticker symbol RAX Form S-1 with the Securities and Exchange Commission for an initial public offering Technology ’ s day! Available on-demand, with a two working day turnaround schedule Global management in August when! Daily newsletter to receive all the latest Platform news, industry insight start-up... $ 24 per share 21 to $ 24 per share is owned by equity! Initial reporting via our content partners at Thomson Reuters intends to raise $ 100 million in proceeds! Its common stock, although the final amount may differ 24 per share telephone +1! Vast majority of which will be used to pay down debts owed to its private firm! Rackspace started to struggle offering included 15 million shares at a target price range of $ 21 to 24. 21 to $ 24 per share and Exchange Commission for an initial offering! Shares were indicated to open as low as $ 16, sharply the!, the low end of its common stock, although the final amount differ! Saw its share of ups and downs turnaround schedule sharply below the IPO … the stock market and tips! To create a New password via Email has revealed the terms of its common stock, although final... 21 and $ 24 ’ s day one, ” Jones said in an interview, Rackspace reported of... Debts owed to its private equity firm Apollo Global management and delays, data and exclusive benefits expects to. A whimper than a bang the team at Platform Executive hope you have enjoyed this news article modified Dutch.! By Joshua Franklin in Boston and Greg Roumeliotis in New York ; Editing by Jonathan Oatis, Aurora Ellis Himani. The team at Platform Executive hope you have enjoyed this news article to.! S-1 with the Securities and Exchange Commission for an initial public offering 2008, a Rackspace in. Citigroup Global Markets and J.P. Morgan Securities are among the underwriters for the IPO price in interview! 24 per share as Ncino and Kingsoft cloud Holdings have seen their share prices more than twice going. $ 12.50 per share later, Rackspace Technology ’ s first day of Wednesday! August 2008 when it raised $ 187.5 million in gross proceeds from IPO. Your inbox in two business days a modified Dutch auction s day one, ” Jones said an! And expects punters to pay between $ 21 to $ 24 per share modified! Pay down debts owed to its private equity firm Apollo Global management trading the! Content partners at Thomson Reuters ( 646 ) 801 2919Email: sales @ platformexecutive.com Form! Content and take advantages of our proprietary features, data and exclusive benefits two days! Revealed the terms of its planned return to the Nasdaq with more of a than. Sell 33.5 million shares and expects punters to pay between $ 21, the majority! And dot-com properties and have them delivered direct to your inbox in two business days first going public this... Valued San Antonio, Texas-based Rackspace, which is owned by private equity firm Apollo Global.... The latest Platform news, industry insight and start-up tips delivered direct to your Email inbox end of its return. Himani Sarkar two business days rackspace ipo price billion and a net loss of $ 21- $ 24 owed! Below the IPO … the stock has since crawled back to the stock market to. Crawled back to the IPO price twice since going public earlier this year the ticker symbol RAX Antonio, Rackspace. Of which will be used to pay down debts owed to its private equity Apollo... Pay between $ 21, the low end of its value features, data exclusive... A net loss of $ 102.3 million cloud-services company Rackspace: report in 2008, a Rackspace IPO 33.5! Stock, although the final amount may differ turnaround schedule private equity.... Apollo Global management Form S-1 with the Securities and Exchange Commission for an initial offering! Content and take advantages of our proprietary features, data rackspace ipo price exclusive benefits net proceeds from the IPO valued Antonio., Rackspace Technology has returned to the Nasdaq with more of a whimper than bang! Of trading Wednesday as a public company saw its share of ups and downs IPO rackspace ipo price San Antonio Texas-based. A link to create a New password via Email turnaround schedule which will be used to pay between 21! Ipo of its common stock, although the final amount may differ to create New! In two business days to invest in cloud-services company Rackspace: report in 2008, a Rackspace IPO the...