Web provider GoDaddy had a fairly successful IPO yesterday, raising an initial US$460m for US$20 shares, before the full issuing opened and closed at US$26.15.
GoDaddy has tried to markedly change its image recently, with this fruitful IPO just one stage in that process.
Its commercials no longer feature the likes of Bar Refaeli and Danica Patrick, and the company is beginning to push its lesser-known services – in general, GoDaddy is known for selling Web Domains.
“It also helps customers get their websites running, grows their business, and sells them products. The company seeks to convince its 13 million customers to buy newer services like company-specific email addresses, bookkeeping software and e-commerce tools,” says the Wall Street Journal.
Originall named Jomax, GoDaddy was started over 15 years ago. This IPO was not the first planned of its kind, with the company unsuccessfully seeking such a shift ten years ago.
The company is actually running at a loss, which concerns some in the industry.
“The challenge is that the company has not been profitable, and has posted losses so far,” says Reena Aggarwal, an IPO expert, in USA Today.
“On the positive side, the firm is a leader in its space, revenues, customers, free cash flows have been growing. What happens to the stock in the near term is likely to be driven more by broad market conditions rather than the fundamentals of the company.”