GoDaddy Inc. gained in its trading debut Wednesday, after the company raised US$460 million inside a larger-than-expected initial public offering.
Shares of the 18-year-old company, which supplies Internet domain-name registration and hosting companies, rose 31% to US$26.17 at 2:32 p.m. in New York. GoDaddy sold 23 million shares for US$20 each, after offering 22 million for as much as US$19. At the IPO price GoDaddy had a market value of just a lot more than US$3 billion.
GoDaddy\’s pitch to investors is that its customer base of small businesses seeking new websites could keep growing. Revenue grew 23% in 2014, that was faster than rivals Endurance International Group Holdings Inc. and Germany\’s United Internet AG.
\”Most smaller businesses have less than five employees, and many small-business owners identify themselves as having virtually no technology skills,\” the organization said in its IPO filing. \”Our addressable market extends beyond smaller businesses and includes individuals and organizations, such as universities, charities and hobbyists.\”
GoDaddy is backed by private-equity firms Silver Lake Management and KKR & Co., which acquired a majority stake this year. GoDaddy plans to use the proceeds to create a payment towards the buyout firms and repay debt.