Rackspace Launches IPO

Rackspace Technology, Inc. launches an IPO of 33,500,000 shares of its common stock.

The offering price is expected to be between $21.00 and $24.00 per share.

In addition, the firm expects to grant to the underwriters a 30-day option to purchase up to an additional 5,025,000 shares of common stock at the iIPO price, less underwriting discounts and commissions.

Existing stockholders will not sell any shares in the offering. the company has applied for listing its common stock on the Nasdaq Global Select Market under the ticker symbol RXT.

It expects to receive gross proceeds of approximately $703.5 million to $804.0 million from the offering, before deducting underwriting discounts and commissions and other offering expenses, or $809.0 million to $924.6 million if the underwriters exercise their over-allotment option in full.

It intends to use a portion of the net proceeds from the offering to redeem, retire or repurchase $600 million aggregate principal amount of its outstanding 8.625% Senior Notes due 2024 and to pay related premiums, fees and expenses. The remainder of the net proceeds will be used for general corporate purposes.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are serving as joint lead book-running managers and as representatives of the underwriters for the offering. RBC Capital Markets, LLC and Evercore Group LLC are also serving as book-running managers for the offering. Barclays Capital Inc., BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are serving as bookrunners for the offering. LionTree Advisors LLC, Siebert Williams Shank & Co., LLC, Drexel Hamilton, LLC and Apollo Global Securities, LLC are serving as co-managers for the offering.

Read also:
Rackspace Enters Into $4.3 Billion Transaction to Become Private
Through acquisition by funds managed by affiliates of Apollo Global Management
August 29, 2016 | Press Release
Rackspace Prices IPO of Common Stock
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September 1, 2008 | Press Release