The name GoDaddy.com is not new to
anyone, in fact whosoever has bought a domain name or searched for Hosting Plans; does come across this
huge website. GoDaddy got into the business in early 1997 and since then it has
come pretty long way, where it has nearly 59 million website’s domain name
managed by its team. This statistics was procured towards the end of 2014 and
it has already been almost three months into 2015. In another word, GoDaddy is
handling almost 1/5th of the current domain names on internet; right
now with a team of 4,000 and more that serves nearly 12 million people.
Story of
GoDaddy’s IPO
The company is not just known for its
peculiar Godaddy deals that
it offers through advertisement, but also for NASCAR sponsorship and Super Bowl
adverts. Although, not being the first attempt by the company for going public,
this time it does seem that everything will work out in favour of this plan of
IPOs. The IPO will be offered at a price of $17 to a descent $19 for each
share. The company has its 22 million ‘A Class’ share’s upper valuation limit
set to $2.87 billion. This way the company may raise $418 million from this IPO
launch. It will be traded on NYSE with “GDDY” symbol, which is still under a
good speculation and not confirmed.
However, one of the owners of
GoDaddy, KKR’s ‘A Class’ share stakes will drop to nearly till 27.9% once firm
goes public. Though, the firm’s private equity will still be able to maintain
20.9% of the ‘B Class’ shares in the company. The founder Bob Parsons will get
to hold at least 40% of ‘B Class’ shares as well as 24% of ‘A Class’ share in
the company. Now all that calculation does sound promising and buyers can
expect a sound return in near future for their investment. Though, the present
financial condition of GoDaddy must also be considered before purchasing the
IPOs.
Current
condition of GoDaddy and the future of its IPOs
It is not hidden that the firm has
suffered losses of nearly $143 million in 2014, but if checked then anyone can
observe that it was less compared to the $200 million loss that it had in 2013
and a whooping $279 million loss in the year 2012. No wonder, Godaddy deals have always attracted
people to buy the firm’s products and its web services, but its financial
condition may make many investors a bit apprehensive.
However, with the improvement of its
business tactics every year and a growth trend with better returns, GoDaddy can be trusted to make
good gains in the future. Furthermore, the IPO’s lead underwriters for
GoDaddy are JPMorgan, Citigroup and Morgan Stanley. This may sound a bit
comforting for many who are into small time share trading.(Image by Soni)
Nonetheless, those who have bought Hosting plans from
GoDaddy, can also buy its IPOs without much worry because the returns will
certainly be satisfactory; if not lavish.
