Apollo-Backed Rackspace Technology Files for U.S. IPO

Crystal Tse (Bloomberg) -- Rackspace Technology Inc., a technology services provider backed by private equity firm Apollo Global Management Inc., filed for a U.S. initial public offering.

The cloud-service provider filed with a listing size of $100 million, a placeholder amount that will likely change, according to a filing Friday with the U.S. Securities and Exchange Commission. It plans to list on Nasdaq under the symbol RXT.

Apollo, along with investment firm Searchlight Capital Partners, first invested in Rackspace in 2016. Apollo will retain a majority of the voting power upon the listing, according to the filing.

Rackspace reported a net loss of $48 million on $653 million of revenue in the three months ended March, compared to a net loss of $58 million on $607 million in the same period last year, the filing shows. It has 120,000 customers across 120 countries.

Its 10-person board of directors, headed by Apollo’s co-lead partner David Sambur, consists of one woman and nine men. Susan Arthur, chief operations officer at health service firm OptumInsight and the only female board member, joined the board three months ago.

Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. are leading the offering. Apollo Global Securities, an affiliate of the private equity owner of Rackspace, is among underwriters, the prospectus shows.

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