GoDaddy.com strikes gold, listing makes it worth $3bn
(Bloomberg) — GoDaddy Inc. gained in its trading debut, after the company raised $460 million in a larger-than-expected initial public offering.
Shares of the 18-year-old company, which provides Internet domain-name registration and hosting services, rose 31 percent to $26.15 at 4 p.m. in New York. GoDaddy sold 23 million shares for $20 each,
after offering 22 million for as much as $19. At the IPO price GoDaddy had a market value of just more than $3 billion.
GoDaddy's pitch to investors is that its customer base of small businesses seeking new websites will keep growing. Revenue grew 23 percent in 2014, which was faster than rivals Endurance International Group Holdings Inc. and Germany's United Internet AG.
"Most small businesses have fewer than five employees, and most small-business owners identify themselves as having little to no technology skills," the company said in its IPO filing. "Our addressable market extends beyond small businesses and includes individuals and organizations, such as universities, charities and hobbyists."
Investor Gains
GoDaddy is backed by private-equity firms KKR & Co., Silver Lake Management and Technology Crossover Ventures which acquired a majority stake in 2011.
The firms put $859 million of equity in the purchase, according to Moody's Investors Service. At the close Wednesday, the firms showed about a 195 percent unrealized gain on their investment. The gain included a dividend they received last year.
The Scottsdale, Arizona-based company was founded in 1997 by Bob Parsons and raised its profile through Super Bowl commercials it started showing eight years later. The company's advertising campaigns have featured celebrities including race- car driver Danica Patrick and Israeli model Bar Refaeli.
GoDaddy has almost 13 million customers, the document shows, and generates revenue from subscriptions of domain and hosting products. Sales jumped 23 percent last year to $1.39 billion. The net loss was $143 million in 2014.