initial public offerings (IPOs) trading on American exchanges

Wednesday, April 1, 2015

GoDaddy (GDDY) began trading on the NYSE on 1 April 2015

  • Web hosting company GoDaddy Inc has priced its initial public offering at $20 per share, above its previously indicated $17 to $19 per share range, valuing it at around $4.5 billion, including debt. At this price, the IPO would raise $440 million.

GoDaddy (NYSE:GDDY) priced its IPO late Tuesday at 20, above the expected range of 17-to-19 and placing a valuation on the Internet company at more than $3 billion.

GoDaddy offered 23 million shares and raised $460 million. It originally planned to sell 22 million shares, but increased that by 1 million, according to IPO Boutique. That makes it the eighth-largest IPO in the Internet software and services category since 2001, according to IPO research firm Ipreo.
GoDaddy tops LinkedIn (NYSE:LNKD), which raised $406 million in its May 2011 initial public offering.

The company is the largest provider of Web hosting services, including domain names and website building. GoDaddy reported revenue of $1.39 billion in 2014, up 23%. It reported a net loss of $143 million compared with $200 million lost in 2013. It says it serves 13 million customers, up from 11.6 million in 2013.

Financial research firm Rapid Ratings gives GoDaddy a Financial Health Rating of 26 on a scale of 1 to 100. That places GoDaddy in a "high risk" category, partly due to profitability and cost efficiency at low levels relative to others, Rapid Ratings said.

"Historically, companies with a Financial Health Rating at this level have demonstrated an elevated incidence of default," Rapid Ratings reported.

The largest Internet IPO was Facebook (NASDAQ:FB), which raised $16 billion in May 2012. Facebook was the largest tech IPO of the time, since surpassed by Alibaba Group (NYSE:BABA), which raised $25 billion in its September 2014 IPO, after investment bankers exercised options to buy additional shares. Ipreo puts Alibaba in a different sector, under catalog and online retailing.
Following Facebook as the largest Internet IPO is Twitter (NYSE:TWTR), which raised $2.1 billion in November 2013. Twitter priced its IPO at 26 and now trades near 51.


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Race car driver Danica Patrick at the Daytona International Speedway on Feb. 15, 2014

A screen shot from GoDaddy's 2010 Super Bowl spot featuring race car driver and pitchwoman Danica Patrick.

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