Rackspace's private equity backer is considering an IPO for the hosting provider, less than two years after taking the firm private.
Sources familiar with the matter, Bloomberg reported, claimed that Apollo Global Management has already held talks with advisers as it looks to begin the process by the end of the year.
Apollo took Rackspace private in August 2016 in a deal worth $4.3bn (£3.0bn), but will reportedly value the firm at around $10bn if it opts for a public listing.
Over recent years Rackspace has shifted its focus from a hosting provider model to one of a managed service provider and last year acquired US-based Datapipe.
Bloomberg's sources however urged caution and stressed that no final decision had been made by Apollo.
In Rackspace's last financial results as a public company it reported a quarterly revenue of $523.6m.
Tech IPOs have already become a trend in 2018, with Dropbox's valuation earlier this month standing at over $12bn.
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