Rackspace officially applied for an IPO

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Rackspace has officially applied for an IPO. It will be the second time the company will be listed on the stock exchange after Rackspace left in 2016 following a 4.3 billion deal dollar with venture capitalist Apollo Global Management.

Rackspace has not disclosed the size of its equity portfolio, nor is it known how much the shares will cost. The company plans to trade on the NASDAQ under the ticker RXT. The banks Goldman Sachs, Citigroup, and J.P. Morgan, are accompanying the IPO.

In April, it was announced that Rackspace had quietly prepared for an IPO. The value of the company is estimated at 10 billion dollars (9.2 billion euros), including debt. Rackspace had been planning to go public for some time but was still waiting for the right moment.

Since its privatisation in 2016, Rackspace has focused more on customer service rather than its previous role as a cloud provider. Last year, the company was renamed to Rackspace Technology with a new look, focus and strategy.

First IPO in 2008

In 2008 Rackspace Hosting, as it was then called, went public under the ticker RAX. Rackspace was one of the first companies to offer Infrastructure-as-a-service. The company also played a significant role in the development of the cloud operating system OpenStack that was first introduced at a NASA research facility.

Even though Rackspace had ambitions to compete with the big cloud vendors like Amazon, Microsoft and Google, it soon became apparent that this wasn’t feasible. What followed was a partnership with Microsoft and AWS. In 2016, Rackspace left the stock market after closing a 4.3 billion dollar (3.8 billion euro) deal with venture capitalist Apollo Global Management.