Rackspace Hosting, Inc. (NYSE: RAX) today announced the initial public
offering of 15,000,000 shares of its common stock at a price of $12.50
per share. 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.
A registration statement relating to these securities has been filed
with and declared effective by the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Copies of the final prospectus for the offering may be obtained from
Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street,
New York, New York 10004, by facsimile at 212-902-9316 or by e-mail at prospectus-ny@ny.email.gs.com;
from Credit Suisse Securities (USA) LLC, Prospectus Department, One
Madison Avenue, New York, NY 10010, telephone 800-221-1037; or from
Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080,
telephone 866-500-5408.
About Rackspace Hosting
Rackspace® Hosting, Inc. provides IT systems
and computing as a service to more than 33,000 customers worldwide.
Rackspace Hosting´s offerings include managed hosting, email hosting,
cloud hosting and platform hosting.
Rackspace Hosting, Inc.
Media Relations:
Annalie Drusch,
210-312-7291
media@rackspace.com
or
Investor
Relations:
Karl Pichler, 210-312-7290
inquiries@rackspace.com
or
Brunswick
Group
Erin Becker, 212-333-3810
ebecker@brunswickgroup.com