Filed under: Investments

In one of the biggest technology-related IPOs this year, website and IT system hosting company Rackspace Inc. late Friday filed to raise up to $400 million on the NYSE.

The company previously sought to raise $42 million in an IPO in 2001, but withdrew it in the wake of the tech market meltdown. Rackspace reported 2007 profits of $18 million on net revenue of $362 million. In 2006, it earned $20 million on net revenues of $224 million.

The offering, which will be conducted via auction, would represent a rare IPO exit for a host of investors that have backed Rackspace during its eight-year history. Norwest Venture Partners owns 16.2% of the company, while Sequoia Capital owns 11.6%. Chairman and former CEO Graham Weston is the largest shareholder, with 23.9% of the company’s equity. Goldman, Sachs & Co., Credit Suisse, Merrill Lynch & Co. and W.R. Hambrecht & Co. are underwriting the offering.

Continue reading at TechConfidential.com.

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This entry was posted on Tuesday, June 10th, 2008 at 2:26 pm and is filed under Investments and Raising Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.