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Rackspace shares fall 22% on the first day of trading

Shares of Rackspace Technology Inc. RXT,
fell 22% on its first trading day on Wednesday. Four years after it went private, Rackspace announced the pricing of its initial public offering: 33.5 million shares of common stock at $ 21 per share. But investors turned up their noses and left the stock at $ 16.39 at the close of trading. “We’re in the middle of a tectonic transition to multicloud technology,” company CEO Kevin Jones told MarketWatch in a Zoom interview early Wednesday. “It̵

7;s the right place, the right time for our transformation. We competed with cloud hypercals like Amazon AMZN,
+ 2.10%,
Google GOOGL,
+ 0.39%
+ 0.59%,
and Microsoft MSFT,
Now we are working with them. Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and JP Morgan Securities LLC serve as joint chief accountants for IPO. Rackspace was privately acquired 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 to $ 2.45 billion in revenue and a loss of $ 470.6 million in 2018.

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