Shares of Rackspace Technology Inc. (RXT) plunged 22% on their first day of trading Wednesday. Four years after it went private, Rackspace announced ( ) pricing of its initial public offering: 33.5 million shares of common stock at $21 per share. But investors turned up their noses, leaving the stock at $16.39 at the close of trading. "We're in the middle of a tectonic shift to multicloud technology," company Chief Executive Kevin Jones told MarketWatch in a Zoom interview early Wednesday. "It is the right place, right time for our transformation. We used to compete with hyper-scalers in cloud like Amazon (AMZN), Google (GOOGL)(GOOGL), and Microsoft (MSFT). Now, we partner with them." Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., and J.P. Morgan Securities LLC are serving as joint lead book-running managers of the IPO. Rackspace was taken private by Apollo Global Management in a $4.3 billion acquisition in 2016. Last year, Rackspace reported revenue of $2.44 billion and a loss of $102.3 million, compared with $2.45 billion in revenue and a loss of $470.6 million in 2018.
-Jon Swartz; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 05, 2020 18:17 ET (22:17 GMT)
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