Rackspace Hosting IPO prices for $12.50, within range

NEW YORK, Aug 7 (Reuters) - Rackspace Hosting Inc (RAX.N) shares priced at $12.50 on Thursday, in the company's initial public offering, within its estimated range of $12 to $16, an underwriter said.

The San Antonio-based web hosting company sold 15 million shares, raising $187.5 million.

The proceeds of the offering will be used to finance its growth and general corporate purposes, according to a regulatory filing.

The underwriters, led by Goldman Sachs & Co (GS.N), Credit Suisse, and Merrill Lynch MER.N can buy an additional 1.9 million shares.

The company plans to list on the New York Stock Exchange under the symbol "RAX." (RAX.N) (Reporting by Phil Wahba; editing by Carol Bishopric)