Rackspace Files for IPO

Rackspace Inc., a San Antonio-based hosting company, has filed for a $400 million IPO. It plans to trade on the NYSE under ticker symbol RAX, with Goldman Sachs, Merrill Lynch and Credit Suisse serving as co-lead underwriters.

 

The company has raised over $48 million in VC funding since 1999, from firms like Norwest Venture Partners (16.2% pre-IPO stake) and Sequoia Capital (11.6%). It had first filed for an IPO in early 2000, but pulled it later that year due to unfavorable market conditions. www.rackspace.com