GoDaddy has priced its initial public offering at $20 (£13.48) per share, a higher estimate than the $17 to $19 (£11.40 to £12.80) reported earlier this week. This values the web hosting service at $4.5 billion (£3 billion) including debt.
The IPO could add £296 million to GoDaddy’s coffers, unless investors decide the web hosting service is not worth the money. Several technology companies have surged in the first few weeks on the stock market, only to lose interest a month later.
GoDaddy will trade on the New York Stock Exchange under the ‘GDDY’ symbol. It is the first IPO for the company, after opening in 1997.
Silver Lake Partners and KKR & Co acquired GoDaddy in 2011 for £1.52 billion including debt. It has not been able to turn a profit since 2011, which is a worry for investors who might not see the company performing any better after the funding.
Even with the low amount of profit in the last three years, GoDaddy has expanded its revenue by 52 per cent to £940 million. The venture into other web services like website building, domains and social development has made GoDaddy a lot of extra revenue.
GoDaddy tried to get on the stock market in 2006, but withdrew its application citing unfavorable market movements. It does not look any more favorable at the moment for tech companies, with Google, Netflix and Apple all dropping in the past month.
That said, Facebook and Twitter have shown growth on the NYSE over the past month, showing that some internet companies can weather the storm with good results.