Rackspace Technology has filed an S-1 form with the U.S. Securities and Exchange Commission for its initial public offering. The company intends to price its 33.5 million shares in the range of $21 to $24, with an overallotment option for an additional 5.025 million shares. At the maximum price, the entire offering would be valued at $924.6 million. The company intends to list its shares on the Nasdaq under the symbol RXT.
The underwriters for the offering are Goldman Sachs, Citigroup, JPMorgan, RBC Capital Markets, Evercore ISI, Barclays, BMO Capital Markets, Credit Suisse, Deutsche Bank Securities, HSBC, LionTree, Siebert Williams Shank, Drexel Hamilton and Apollo Global Securities.
Recently, businesses have moved to the cloud, not only to drive cost, scale and reliability benefits, but also to create new revenue opportunities. At the same time, businesses are increasingly turning to the use of more than one cloud solution at a time to enhance performance.
These trends have accelerated recently as businesses create and adapt to new economic and labor models and are increasingly looking for technologies that enable digital transformation and enhance productivity. Ultimately, Rackspace handles all of this.
Rackspace is an end-to-end multicloud technology services company. The firm designs, builds and operates its customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. Rackspace partners with its customers at every stage of the cloud, enabling them to modernize applications, build new products and adopt innovative technologies.
In terms of its finances, the company said that it had revenues of $2.44 billion, a net loss of $102.3 million, adjusted earnings before interest, taxes, depreciation and amortization of $742.8 million and adjusted net income of $62.4 million. For the three months ended March 31, 2020, Rackspace had revenues of $652.7 million, a net loss of $48.2 million, adjusted EBITDA of $185.6 million and adjusted net income of $27.0 million.
The company expects to use the net proceeds from this offering to pay down its debt, as well as for general corporate purposes.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
