RackSpace IPO Friday
2008 August 6
Rackspace the huge hosting company goes to market on Friday with its IPO.
The ten-year-old company logged net revenues of $362 million in 2007, and a profit of $17.8 million.
It’s offering 15 million shares at between $12 and $16 per share in a Dutch auction format (what Google used for its IPO), and it’s backed by some great names in venture capital, including Sequoia and Norwest Venture Partners.
“Rackspace is well-positioned as a provider of next-generation hosting services,” said Bill McNee of Saugatech Research Services, a consulting firm. “The question is, what will they do to differentiate themselves in an increasingly crowded market?”
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Good luck to RackSpace
UPDATE
The initial public offering of computer hosting services provider Rackspace Hosting Inc. on Friday continued a losing streak for IPOs, dropping 20% on its first day of trading.
The company’s stock closed at $10.01 a share on the New York Stock Exchange, down from its offering price of $12.50. A total of 15 million shares were sold at the low end of its expected $12 to $16 price rang