Rackspace prices IPO at low end of range, raises USD 704 million

News Broadband Global 5 AUG 2020
Rackspace prices IPO at low end of range, raises USD 704 million

Rackspace Technology has priced its IPO at USD 21 per share, the low end of the indicated subscription range. This puts the gross proceeds of the sale of 33.5 million shares at USD 703.5 million. The underwriters have a 30-day option to purchase up to 5.025 million more shares at the same price. 

The shares are expected to begin trading on the Nasdaq market 05 August, and the offering will close on 07 August. 

The company plans to use part of the proceeds to pay off its USD 600 million in outstanding notes due 2024. The remainder of the net proceeds will be used for general corporate purposes.

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