When Rackspace Hosting Inc. attempted to go public in 2001, it withdrew the offering because of market conditions. Seven years later, tough conditions aren't stopping the Web hosting company from trying again.

San Antonio-based Rackspace aims to raise $162.6 million through a sale of 15 million shares at between $12 and $16. It began pricing of the offering through an auction process on Tuesday and expects to complete the process and price its shares after the stock market closes Thursday, Aug. 7.

Much has changed for Rackspace since it last tried to go public. Its revenues have increased from $56.6 million in 2003 to $362 million in 2007, representing an annual growth rate of 59%. Net income in the same five-year period rose from $208,000 to $17.8 million. For the first three months of 2008, the company reported net income of $5.4 million on revenues of $119.6 million versus net income of $4.2 million on revenues of $75.2 million for the same period a year ago.

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