GoDaddy, the Internet domain registrar and web hosting service, made its public trading debut Wednesday morning under the ticker symbol “GDDY” and raised an amount as large as $460 million.
GoDaddy priced its IPO at $20 Tuesday night, compared with its expected range of $17 to $19. The stock commenced trading at $26.15 a share on Wednesday. GoDaddy had earlier offered 22 million shares in the $17 to $19 range. Even though the company hasn’t made any profit since 2009, it earned a valuation of over $3 billion.
According to statistics, GoDaddy had 12.7 million customers at the end of 2014, generating $1.4 billion in revenue but bearing a net loss of $143 million.
GoDaddy said in its IPO filing-
Most small businesses have fewer than five employees, and most small-business owners identify themselves as having little to no technology skills. Our addressable market extends beyond small businesses and includes individuals and organizations, such as universities, charities and hobbyists.
GoDaddy was acquired by private equity firms KKR and Silver Lake Partners for $2.25 billion in 2011, which was then followed by Parsons stepping down as the CEO of the company. GoDaddy filed for this IPO in June 2014.
Interestingly, the firm has featured celebrities including race-car driver Danica Patrick and Israeli model Bar Refaeli for its advertisements and creating brand awareness. The company says that it has received a lot of aid from its aggressive advertisement and will continue to do so.
GoDaddy plans to use the proceeds to make a payment to the buyout firms and repay debt. GoDaddy, which still primarily helps small companies get domain names, has been investing in other lines such as hosting customers’ sites.