GoDaddy Prices IPO at $20
Internet domain registration service, GoDaddy (NYSE:GDDY), has priced its long-anticipated IPO at $20 per share, raising $440 million.
The company, which also helps small business owners build their online presence, says it has about 13 million customers worldwide and manages 59 million domain names.
Known for its racy ads, including ones featuring race car driver Danica Patrick, GoDaddy has seen revenue growth, coming in at $1.4 billion last year -- up from $1.1 billion in 2013 and $911 million in 2012. The business is unprofitable, however.
“They are losing money, which isn't good, but they are trending in the right direction, with losses shrinking and revenues growing,” Brian Hamilton, Chairman of Sageworks, said. “GoDaddy's valuation is almost shockingly low considering the tech valuations we've recently seen.”
The company lost $143 million last year and $200 million the year before.
"The activity in our sector is added proof that small businesses need to get online and that this is a growing trend and a big market," Eric Mason, Director at Wix (NASDAQ:WIX), said. Wix, which competes with GoDaddy in web development, did an IPO in 2013 and has seen its shares rise 8% in the last month.
Founder and Director Bob Parsons is the largest shareholder, with a 40% stake. Private equity firm KKR (NYSE:KKR) owns 21% and Silver Lake owns 22%.
The lead underwriters are Morgan Stanley (NYSE:MS), J.P Morgan (NYSE:JPM), and Citigroup (NYSE:C). Barclays, Deutsche Bank and RBC Capital Markets are also working on the transaction.
The Scottsdale, Ariz.-based GoDaddy was founded in 1997, and first filed for an IPO in 2006, but canceled, citing market conditions.