In one of the biggest technology-related IPOs this year, website and IT system hosting company Rackspace Inc. late Friday filed to raise up to $400 million on the NYSE.
The company previously sought to raise $42 million in an IPO in 2001, but withdrew it in the wake of the tech market meltdown. Rackspace reported 2007 profits of $18 million on net revenue of $362 million. In 2006, it earned $20 million on net revenues of $224 million.
The offering, which will be conducted via auction, would represent a rare IPO exit for a host of investors that have backed Rackspace during its eight-year history. Norwest Venture Partners owns 16.2% of the company, while Sequoia Capital owns 11.6%. Chairman and former CEO Graham Weston is the largest shareholder, with 23.9% of the company's equity. Goldman, Sachs & Co., Credit Suisse, Merrill Lynch & Co. and W.R. Hambrecht & Co. are underwriting the offering.
