Rackspace looks to expand in Asia

In its IPO prospectus, Rackspace (ww.rackspace.com) has said its goals for the flotation are to grow its hosting efforts around the world, particularly by expanding into markets in Europe and Asia. It has experienced fast revenue growth between 2005 and 2007 of USD 138 million to USD 362 million which has strained its operating and financial resources, hence the IPO. Joint book-running managers for the IPO are Goldman, Sachs & Co., Credit Suisse Securities and Merrill Lynch & Co. W.R. Hambrecht + Co., Jefferies & Company, Cowen and Company, RBC Capital Markets, JMP Securities, Signal Hill Capital Group, and E*TRADE Securities are the co-managers for the offering. Interestingly the company has launched CloudFS, an offering in beta mode from Rackspace's Mosso division, which will add a new storage option to its range of services, and can be accessed on-demand and scaled to greater storage amounts as needed.