Rackspace Sets IPO Terms

Austin-basd RackSpace, a provider of hosted Internet services, said in a filing with the SEC this morning that it will offer 12,700,000 shares of its stock at between $12.00 and $16.00. The firm has applied for listing on the New York Stock Exchange as "RAX". The firm's IPO is being underwritten by Goldman, Sachs & Co., Credit Suisse, Merrill Lynch & Co., WR Hambrecht + Co, Jefferies & Company, Cowen and Company, RBC Capital Markets, JMP Securities, Signal Hill, and E*TRADE Securities. RackSpace provides colocation and other Internet hosting services. The firm reported in its S-1 that it earned $27.8M on revenues of $362M in 2007.