As the market opened Wednesday, one of the most anticipated IPOs for the year was launched. GoDaddy, the leading Internet domain register and Web hosting service went public.? The pegged price for the stock jumped 31% during the day?s trading, leaving the 22 million share public offer from USD20 to USD26.15 per share within the first hour of trading.
The initial offer for the stock was between USD17 and USD19 per share but opened? at USD20. At the market close, the market capitalization for GoDaddy.com would be at about USD6 billion.
GoDaddy.com, aside from its online services, is best known for its race car driver Danica Patrick. It is also well known for its racy Super Bowl ads. The company opened shop 18 years ago but it?s management is still in the process of learning the proper ways of operating a large corporation, according to some pundits.? In 2014, the company posted a loss of USD143 million, which is total of USD622 million in the past three years.
GoDaddy is also burdened with debt, carried over during its leveraged buyout by private equity firms led by KKR. Registered as ?GDDY?, the share price high was at USD26.84.
According to its owners, the company is working hard to change its image. The focus would be informing everyone that the company not only sells Website domains but provides many other services. These include maintenance services for websites, advisory on business strategy and even marketing services for their customers. There are also standing offers to its current clientele for company-specific email addresses, e commerce packages and even bookkeeping tools.
The sales of the new package of GoDaddy services are now purchased at a rate twice that of its original business of web domains. Aside from the increased volume, these services provide a bigger profit return, increasing the profit from GoDaddy clients from a measly USD93 back in 2012 to USD114 in 2014.
With the new windfall, expect better services from the company and more product offerings in the years to come. The company has sought to rise from the perception it was a happy go lucky dot com form to a serious contender in the online business space for the years to come.
Image courtesy of Creative Commons contributor Hans J E.