With IPO, Web Hosting Company GoDaddy Valued at Up to $5.48 Billion The offering enabled GoDaddy to raise $460 million.

By Reuters

This story originally appeared on Reuters


GoDaddy Inc's shares rose as much as 34 percent in their debut on Wednesday, valuing the Web hosting and domain registration company at up to $5.48 billion, including debt.

The company, backed by KKR & Co LP and Silver Lake Partners LP, raised $460 million after its initial public offering of 23 million class A shares was priced at $20 per share, above the expected range of $17-$19.

GoDaddy, which sponsors race car driver Danica Patrick, sold all the shares in the offering.

"GoDaddy is a cash flow proven business and has very strong brand recognition and that is driving the initial interest for the deal," said Josef Schuster, founder of research firm IPOX Schuster.

The company's rivals include Endurance International Group Inc and Web.com Group Inc as well as Amazon.com Inc and Google Inc, which have recently entered the domain registration business.

GoDaddy had about 13 million customers across 37 countries as of Dec. 31. The company manages about 59 million domains, nearly a fifth of the world's total domains, according to its IPO filing.

Founded in 1997 by Bob Parsons, GoDaddy is led by Blake Irving, a former chief product officer of Yahoo Inc.

GoDaddy filed for an IPO in 2006 and later withdrew it due to unfavorable market conditions. The company was acquired in 2011 by a private equity consortium led by KKR and Silver Lake for $2.25 billion, including debt.

Parsons will hold nearly 24 percent of GoDaddy's class A shares and 40 percent of class B shares after the offering.

KKR and Silver Lake will each hold 23.9 percent of its class A shares and 20.9 percent and 22 percent of class B shares, respectively, if the underwriters do not exercise their option.

GoDaddy's revenue jumped about 52 percent in the past three years to nearly $1.39 billion, while net loss narrowed to $143.3 million in 2014 from $279 million in 2012.

The Scottsdale, Arizona-based company had about $1.42 billion in long-term debt as of Dec. 31.

GoDaddy, known for its controversial ads, attracted the ire of animal rights activist with its recent Super Bowl commercial featuring a website selling puppies.

The stock opened at $26.15 and touched a high of $26.84 on the New York Stock Exchange.

Morgan Stanley, JP Morgan Securities and Citigroup were the lead underwriters for the IPO.

(Editing by Kirti Pandey)

Wavy Line

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics


5 Easy Things You Can Do to Boost Company Morale

Little things add up over time — Here's what you can do to make someone's day a little better in the workplace.

Business News

Woman Goes Viral For Brow-Raising Email Signature About Working Moms: 'Everyone Is Feeling This'

The email signature was created in response to pressure to answer emails within 24 hours.


Which Hiring Strategy Is Right for Your Startup? My Experience Says This One

Startup businesses face a unique environment when it comes to adding the talent it needs during their earliest stages of operations, and every hiring decision is critically important to get right the first time.


The Rise of Nano-Influencers: How the Smallest Voices are Making the Biggest Impact

The bigger an influencer is, the more beneficial it is for a brand to collaborate with them, right? Not necessarily.