This article has been updated.

As it prepares its long-awaited return to the public market, Rackspace Technology priced its initial public offering (IPO) at the low end of its targeted range, Reuters reported Tuesday.

According to the report, which cited an unnamed source, Rackspace set the price of its shares at $21, aiming to raise $703.5 million. The Windcrest-based company owned by Apollo Global Management had targeted a share price between $21 and $24, according to an updated S-1 filing last week. It is due to begin trading on the Nasdaq on Wednesday under the ticker symbol RXT.

The company is being valued at $4.18 billion, excluding debt. According to the filing, as of March 31, Rackspace had $3.9 billion of outstanding indebtedness, $3 billion of which it attributes to being acquired by Apollo Global Management.

An S-1 is the initial registration form required by the SEC for public companies based in the U.S. As of publication, Rackspace had not yet disclosed the number of shares offered or the price range.

Rackspace did not immediately return a request for comment.

Lindsey Carnett

Lindsey Carnett

Lindsey Carnett reports on business and technology for the San Antonio Report.