Rackspace files plans for initial public offering of stock

Rackspace Inc. has filed a registration statement with the U.S. Securities and Exchange Commission that clears the way for the company to proceed with an initial public offering of common stock.

The number of shares that will be offered and the price range for the offering have not yet been determined.

A call to the company requesting further comment on the offering was redirected to a recorded message indicating that Rackspace would not be releasing any additional information until the registration statement becomes effective. It is common for companies to enter into a quiet period once they file registration statements with the SEC. The purpose of the quite period is to avoid premature promotion of the stock offering.

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Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and Merrill Lynch & Co. will act as joint book-running mangers for the offering.

Goldman, Sachs will be making copies of the preliminary prospectus available to interested parties once the offering is finalized.

Rackspace ended the year with revenue of $362 million as of Dec. 31, 2007.

San Antonio-based Rackspace provides managed hosting information technology services for 29,000 business customers. The company managed more than 36,000 servers, more than 700,000 business e-mail accounts and more than 32,000 cloud hosting domains.