Rackspace Sets IPO Terms

Rackspace Inc., a San Antonio-based hosting company, has set its IPO terms to 15 million common shares being offered at between $12 and $16 per share. It would have an initial market cap of approximately $1.6 billion, were it to price in the middle of its range.


Rackspace plans to trade on the NYSE under ticker symbol RAX, with Goldman Sachs, Merrill Lynch and Credit Suisse serving as co-lead underwriters.


It 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