Rackspace IPO prices at lower end of the price range
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UPDATE: Rackspace Hosting falls on IPO debut
Rackspace Hosting Inc. (NYSE: RAX), the company behind the Mosso cloud computing platform, today announced the initial public offering of 15,000,000 shares of its common stock at a price of $12.50 per share at the lower end of the expected price range of $12 - $16 a share. The company had used an auction process for the Initial Public Offering.
Rackspace will offer 12,700,000 shares of its common stock in the offering and the selling stockholders will offer an additional 2,300,000 shares of common stock in the offering. Rackspace and the selling stockholders have also granted the underwriters a 30-day option to purchase up to an additional 2,250,000 shares to cover over-allotments. Rackspace’s common stock will begin trading on the New York Stock Exchange under the symbol “RAX” on Friday, August 8, 2008.
Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and Merrill Lynch & Co. are acting as joint book-running managers for the offering. W.R. Hambrecht + Co., LLC, Jefferies & Company, Inc., Cowen and Company, LLC, RBC Capital Markets Corporation, JMP Securities LLC, Signal Hill Capital Group LLC, and E*TRADE Securities LLC are the co-managers for the offering.
