GoDaddy sets to go clean to sell per shares at $20 in IPO


Until four years ago, GoDaddy was an Internet registration company with a history of raunchy marketing. But now it tries to get clean and prepares for a new life on the public stock markets. It publicize to get noticed by all that it does much more than register website addresses and does not rely on risqué commercials either. At already big week for Silicon Valley on Wall Street, GoDaddy is expected to steal the show once and for all.

GoDaddy go public

The website registration company has been rumored along with a highly anticipated initial offering plan, and now it looks like it’s time for the shares to get off to a good start very soon. The company on Tuesday, priced shares of its stock $20 in its initial public offerings, before the expected debut of company stock on the New York Stock Exchange later this week. According to the reports, this initial public offering gives the company a valuation of nearly $.45 billion.

Reuter and SeekingAlpha were the first to report on the pricing news, apart from the CNBC and Investor’s Business Daily writer Brian Deagon’s tweets. In a regulatory filing presented earlier this month, GoDaddy had sketched plans for offering up 22 million shares of Class A common stock, priced from $17 to $19 per share with a valuation of just $2.87 billion.

However, the latest filing with the U.S Securities and Exchange Commission has not been declared so far neither has GoDaddy publicly commented on the higher valuation at the time of publishing. The company’s share is soon to start trading from Wednesday morning using the ticket symbol ‘GDDY.’

GoDaddy, which was started in 1997, has been long time coming, adding on more than 60 million personal and business domains under its name for more than two decades. It first filed for an IPO in 2006 before scrapping those plans over supposed valuation concerns. However, at that period, the founder and then-CEO Bob Parsons said he was opposed to SEC “quiet period” regulations in the lead-up to IPOs.

The web-hosting company claims it has about 13 million customers and registered domains of more than 59 million. In February, the company reported approximate revenue of $1.4 billion in 2014, which represented almost a 23% gain from the previous year. Still, the company continues to lose money with $143 million in losses last year after ending 2013 nearly $200 million in the pit.

As the company is ready for its market debut, it has been working to set aside its controversial reputation in the past. Apart from the Internet domains, the company sells other online services like marketing tools and bookkeeping software for the entrepreneurs. It has become one of the biggest resellers of Microsoft’s Office 365 suite of productivity and email services that increased 10% of its sales in 2014.

Apart from English, GoDaddy has expanded abroad in 37 countries offering more than 15 languages. About 1/4th of its revenue of the company now comes from businesses internationally.

On the whole, sales of the company have increased gradually in the last three years up to $1.4 billion in 2014. During the same period, the company lost 143.3 million when seen from the accounting principles point of view, but from the company’s point of view, it calls adjusted earnings before interest, taxes, depreciation and amortization, which removes some accounting charges. On this scale, GoDaddy earned $271.5 million.