US Markets
RXT

Apollo-owned cloud company Rackspace shares slump 20% in Nasdaq debut

Shares of cloud services firm Rackspace Technology Inc plunged nearly 20% after making their Nasdaq debut on Wednesday, after the company owned by Apollo Global Management sold shares to investors in its $703.5 million initial public offering.

Aug 5 (Reuters) - Shares of cloud services firm Rackspace Technology Inc RXT.O plunged nearly 20% after making their Nasdaq debut on Wednesday, after the company owned by Apollo Global Management sold shares to investors in its $703.5 million initial public offering.

The stock opened at $16.85 on Wednesday, compared with its IPO price of $21.00 per share.

Rackspace, which leases server space and helps corporations store and access data in the cloud, sold 33.5 million shares at the bottom end of its target range of $21.00 to $24.00 per share, valuing the company at $4.18 billion, excluding debt.

The IPO bucked the recent trend of strong appetite from investors for cloud computing companies as the novel coronavirus outbreak drives more businesses to operate digitally and rely on cloud computing for more of their workflow.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amy Caren Daniel)

((noor.hussain@thomsonreuters.com; Within U.S. +1 646 223 8780; Outside U.S. +91 80 6182 2663 or +91 80 3796 2663 ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

RXT APO

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More