Rackspace, Cloud-Services Provider, Files for IPO on Nasdaq

Cloud-services company Rackspace, owned by the private-equity firm Apollo Global, filed to go public.
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Clou-ervice company Rackspace Technology filed with the Securities and Exchange Commission to go public on Nasdaq. 

The San Antonio company, leases server space and helps corporations store and access data in the cloud, Reuters reports.

Rackspace, owned by private-equity firm Apollo Global Management,  (APO) - Get Report has been exploring an IPO for two years, according to Reuters. 

But Rackspace has had a tough time, since Apollo's leveraged buyout in 2016 and subsequent acquisitions have saddled the company with about $4 billion in debt. The company has $125.2 million in cash. 

Rackspace estimates the global market for managed services and cloud infrastructure services at $410 billion, with expectations for 7% annual growth to $502 billion in 2023. 

The company has 120,000 clients across 120 companies with no one customer generating more than 2% of the company's total revenue in 2019. 

The company did not provide financial details about the offering. Reuters reported in April that people familiar with the matter said a public offering could value the company at more than $10 billion, including debt. 

Rackspace would trade on the Nasdaq under the ticker symbol RXT.

Goldman Sachs, Citigroup, JPMorgan, RBC Capital and Evercore are underwriters for the offering. 

The company hired Kevin Jones as chief executive in April 2019 and Chief Financial Officer Dustin Semach in July 2019. 

Two weeks ago, cloud software provider Jamf Holding filed for an initial public offering on the Nasdaq. 

Goldman Sachs, J.P. Morgan, BofA Securities and Barclays are the lead book-running managers for the Jjamf offering.