Rackspace, the San Antonio-based cloud services firm, applied for initial public offering (IPO) last Friday. This follows its parent company Apollo Global Management registering for the move back in April.
While Rackspace did not specify in its paperwork filed with the US Securities and Exchange Commission the size of the offering, a source specified to the news organization Reuters that it is expected at around $10 billion, which includes debts. Underwriters for the IPO include Citigroup, Goldman Sachs, and JP Morgan.
Rackspace had previously explored IPO options in the past two year, but had stopped due to “its weak organic growth and large debt” after the $4.3 billion buyout from Apollo according to Reuters. After generating $264.8 billion in revenue in 2019, it finally took the jump earlier this year due to company growth pushing it to IPO range in the wake of the COVID-19 pandemic as more companies turned to remote work and began seriously needing reliable cloud server space.
Rackspace is expected to list on Nasdaq under “RXT.”