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Rackspace IPO Previews
A look at what the financial blogs and news sites are saying about tomorrow's IPO for Rackspace (RAX).
Rich Miller
August 7, 2008
2 Min Read
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A number of financial web sites have stories today about the Rackspace IPO. The company's dutch auction will conclude tonight, and the shares will begin trading tomorrow on the New York Stock Exchange. Executives of the San Antonio managed hosting specialists are expected to ring the opening bell at the New York Stock Exchange tomorrow at 9:30 am.
Be sure to check out our Rackspace Channel for all of Data Center Knowledge's coverage of the IPO announcement and details from the SEC filings. Here's an overview of today's coverage from the financial press:
Fortune: "It's fair to expect some buzz on Friday, when San Antonio hosting company Rackspace takes a bow. As tech IPOs go, the prospectus on this one reads like a pretty safe bet."
TheStreet.com: "Analysts expect a relatively warm response to an IPO by Rackspace Hosting, but the company faces tough competition in its attempt to produce long-term growth." Grain of salt alert: This story mentions reports that the shares may price at $17, above the $12 to $16 range.
MSN MoneyBlog: Kim Peterson has an interesting look at the dynamics of the dutch auction approach chosen by Rackspace and how the "winner's curse" may play into early trading. "Because the price is unknown until the end, winners might think they paid too much and will unload shares to limit losses. And the people who underbid will see this and steer clear. Rackspace warns investors that the stock could see a "significant decline" in value shortly after the IPO," she writes.
Seeking Alpha: Coverage includes an overview chock full of info from the S1 filing.
Morningstar: At the low end of the clue spectrum, this analysis invokes Exodus and the "financial ruin" caused by oversupply in the dot-com days.
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