GoDaddy stock soars 30% after $460M IPO
Internet firm taps into thirst for hot new technology stock
GoDaddy stock soared 30 per cent in its trading debut on Wall Street Wednesday, in a listing that raised $460 million US.
The Scottsdale, Arizona-based company is 18 years old, but has posted losses for the last six years. Last year, it posted a loss of $143 million and it is burning through cash as it builds its internet services line.
However, it drew attention with its racy Super Bowl ads and sponsorship of NASCAR star Danica Patrick.
GoDaddy wooed investors with a pitch involving building on its customer base of small businesses websites. Revenue grew 23 per cent in 2014.
There appears to be a taste on Wall Street for a hot technology stock with potential for growth.
"Most small businesses have fewer than five employees, and most small-business owners identify themselves as having little to no technology skills," the company said in its IPO filing. "Our addressable market extends beyond small businesses and includes individuals and organizations, such as universities, charities and hobbyists."
The listing values GoDaddy at about $3 billion.
Private equity firms Silver Lake Management and KKR & Co. acquired a majority stake in GoDaddy in 2011 and the company will use proceeds of the listing to make a payment to the buyout firms and repay debt.