Storage and server hosting specialist Rackspace completed its IPO today, although tough economic conditions resulted in a lackluster first days trading.
Last night the vendor priced 15 million shares at $12.50 per share, some 12.7 million of which were offered by Rackspace, and the remainder from selling shareholders.
Trading under the ticker symbol RAX on the New York Stock Exchange (NYSE), the shares opened at $10 this morning, closing just one cent higher tonight.
It should have been priced lower or the deal should have been postponed until the economy improved, says Scott Sweet, senior managing partner of analyst firm IPOBoutique, explaining that todays offering did not do Rackspace justice. The company reads very well and it has a very fast growing and very profitable story.
Rackspace, for example, is one of a number of companies touting cloud storage services to users in addition to its other hosting products. Documents filed with the SEC today list Microsoft, Yahoo, Amazon, and Facebook as Rackspaces top customers.