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?”
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