Rackspace IPO prices at bottom of target range: source

NEW YORK (Reuters) – Cloud services firm Rackspace Technology Inc on Tuesday priced its initial public offering (IPO) at $21 per share, the bottom end of its target range, to raise $703.5 million, according to a person familiar with the matter.

The IPO valued San Antonio, Texas-based Rackspace, which is owned by private equity firm Apollo Global Management , at $3.48 billion, excluding debt. The company had aimed to sell 33.5 million shares at a target price range of $21-$24 per share.

A representative for Rackspace declined to comment.

(Reporting by Joshua Franklin in Boston and Greg Roumeliotis in New York; editing by Jonathan Oatis)