|Bid||26.92 x 800|
|Ask||27.01 x 900|
|Day's Range||26.85 - 26.94|
|52 Week Range||15.50 - 27.13|
|Beta (5Y Monthly)||1.67|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||1.59 (5.93%)|
|Ex-Dividend Date||Aug 28, 2020|
|1y Target Est||N/A|
Rackspace has returned to the public market with an offering of 33.5 million shares priced at $21 apiece, raising just over $700 million, and giving the company a market capitalization of $4.2 billion, almost exactly what the company sold for when it was taken private by the private-equity firm (APO) four years ago. Rackspace at March 31 also had about $4 billion in debt, including $3 billion that traces back to the 2016 leveraged buyout. In an interview with Barron’s Wednesday morning, Rackspace CEO Kevin Jones said the company has been completely transformed since it was taken private.
Rackspace Technology, Inc. raised $704 million in its initial public offering Tuesday, pricing the shares at the lower end of its previously indicated range.What Happened The Apollo Global Management Inc (NYSE: APO)-backed cloud computing firm sold 33.5 million shares priced at $21 each. It had previously indicated a price range of $21 to $24 per share the offering. The issuance was oversubscribed, according to Bloomberg, which earlier reported the news. If the IPO underwriters exercise a greenshoe option to purchase an additional 5 million shares, Rackspace's total raised amount would be a little over $809 million. The company said it would use a portion of the net proceeds to pay a $600 million debt in the form of Senior Notes due 2024 and use the remainder for general corporate purposes.Goldman Sachs Group Inc (NYSE: GS) investment arm Goldman Sachs & Co. LLC, Citigroup Inc's (NYSE: C) institutional broker Citigroup Global Markets Inc, J.P. Morgan Securities LLC, an investment management company of JPMorgan Chase & Co (NYSE: JPM), along with Apollo Global Securities, served as underwriters for the offering.Rackspace shares are set to list at the Nasdaq Stock Exchange on Wednesday under the ticker "RXT." Apollo will retain 65.1% of voting power in Rackspace after listing, according to the company's filings. Why It Matters The cloud computing company's listing values it at $4.2 billion based on outstanding shares -- including debt, cash, and other considerations -- as per filings it made with the United States Securities and Exchange Commission, Bloomberg noted.The company was taken private in 2016 by Apollo and was valued at $4.3 billion, including debt, at the time.BlackRock Inc (NYSE: BLK), Fidelity, and Norges Bank Investment Management reportedly hold stakes in the cloud computing company.The IPO took place in the backdrop of soaring demand for the sector as the BVP Nasdaq Emerging Cloud index is higher by near 70% for the year.Snowflake, a cloud computing database platform, is expected to priced at nearly $20 billion when it holds its IPO later this year.See more from Benzinga * YouTube Music To Entirely Replace Google Play Music By The End Of The Year * Former Google, Uber Self-Driving Engineer Sentenced To 18 Months In Prison, Seeks .1B In Earnouts * 'Mulan' To Stream At Disney+ Starting Sept. At , On Top Of Subscription(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Rackspace Technology Inc., the cloud-service provider backed by Apollo Global Management Inc., raised $704 million in a U.S. initial public offering priced at the bottom of the marketed range.The company sold 33.5 million shares for $21 apiece, it said in a statement confirming an earlier report by Bloomberg. The shares were marketed at $21 to $24 in the IPO, which was oversubscribed according to people familiar with the matter who asked not to be identified because it wasn’t public.Rackspace is valued in the listing at about $4.2 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Including debt, cash and other considerations, the company has an enterprise value of $7.6 billion, the people said.When it was taken private by Apollo in 2016, the company was valued at $4.3 billion including debt at the time.The San Antonio, Texas-based company estimates its net loss for the second quarter will be $24 million to $44 million on revenue of $655 million to $657 million, its listing documents show.Rackspace designs and operates its customers’ cloud platforms. It has more than 120,000 customers across 120 countries and about 6,800 employees, which the company calls “Rackers.”Investors buying Rackspace shares include BlackRock Inc., Fidelity and Norges Bank Investment Management, according to a person with knowledge of the matter. A spokesperson for Fidelity declined to comment. Representatives for BlackRock and Norges Bank didn’t immediately respond to requests for comment.Apollo will retain 65.1% of the voting power in Rackspace after the listing, the filings show.Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. are leading the offering. Apollo Global Securities, an affiliate of the private equity firm that backs Rackspace, is also an underwriter. Rackspace’s shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol RXT.(Updates with statement in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.