Rackspace Tests The IPO Waters Today; Settles For Half The Price It Was Hoping For
After filing for an IPO last April in which it hoped to raise $400 million, Web hosting provider (and cloud-computing aspirant) Rackspace finally priced its IPO last night at $12.50 a share. That would have brought in $187.5 million, or half what it was hoping for. But it opened this morning at $10 (ticker: RAX). It’s been been going up since then to about $11.
And Rackspace is a solid company financially. But in this market, any IPO is a sign of hope (there were no VC-backed IPOs last quarter). Rackspace backed off from an IPO once before, in 2000. It’s been champing at the bit to go public for a long time. It looks like the shares are trading up. Let’s see where they end the day.
(Disclosure Rackspace is a TechCrunch advertiser).
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- comment on the “crisis” in venture capital by rackspace tests the ...rackspace is a solid company financially. but in this market, any ipo is a sign of hope (there were no vc-backed ipos last quarter). rackspace backed off from an ipo once before, in 2000. it’s been champing at [...]
- comment on update: rackspace files ipo, will set price via auction ...[...] filing for an ipo last april in which it hoped to raise $400 million, web hosting provider (and cloud-computing aspirant) rackspace finally priced its ipo last night at [...]
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