It doesn’t take a rocket scientist to realize that the IPO market is limited or closed to most markets. But solid companies with solid growth stories can still tap the markets. Enter Rackspace Hosting Inc.
The web hosting and storage company has now begun its IPO auction process. Rackspace will offer 12.7 million shares and selling shareholders will sell 2.3 million shares of stock in the IPO. Underwriters were given a 30-day over-allotment option to sell up to 2.25 million shares.
This is being auctioned off under the W.R.Hambrecht OpenIPO in a DutchAuction process. You can visit openipo.com or rackspaceipo.com to getto the auction details. This is expected to price on or around the close on Thursday, August 7, 2008.
Goldman Sachs, Credit Suisse, and Merrill Lynch & Co. are the jointbook-runners. Co-managers are W.R. Hambrecht, Jefferies, Cowen &Co., RBC Capital Markets, JMP Securities, Signal Hill Capital Group,and E*TRADE Securities.
JON C. OGG
JULY 29, 2008