NEW YORK (Reuters) – Private equity firm Apollo Global Management Inc has registered Rackspace Holding Inc for an initial public offering (IPO) that could value the cloud services firm at more than $10 billion, including debt, people familiar with the matter said.
Apollo has been emboldened by the rally in the shares of Rackspace peers such as Fastly Inc and Datadog Inc in recent weeks, the sources said, as the novel coronavirus outbreak drives more businesses to operate digitally and rely on cloud computing for more of their workflow.
Rackspace has confidentially filed for an IPO with the U.S. Securities and Exchange Commission and is planning to proceed with a stock market debut as soon as the volatility that has been fueled by the pandemic subsides, the sources said.
The sources cautioned that a date for Rackspace’s IPO had not yet been set and asked not to be identified because the preparations are confidential. Apollo declined to comment, while Rackspace did not immediately…
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