Web host and domain name provider
GoDaddy is getting ready for its Initial Public Offering (IPO) which is expected to take place at the end of March 2015. The company, which is famed for its risqué Super Bowl commercials which often feature NASCAR racer Danica Patrick, has a global presence which includes operations in India.
Scottsdale, Arizona-based GoDaddy Inc. was established in 1997 by war veteran Bob Parsons. The company initially attempted an IPO in 2006 but pulled the plug citing "uncertainties" in the market. The company generates just over $1 billion in revenue but is losing money - in the 2013 financial year it lost $200 million. The company believes despite the losses the IPO will generate $480,700,000. The lead underwriters for the IPO include Citigroup Global Markets, JPMorgan Securities and Morgan Stanley & Co.
The company will use the money raised by the IPO to repay debt. It has 11.9 million customers globally and manages than 57 million domain names. Its customer base grows by over 10% annually. How the market will react to an IPO of a company that is losing money is debatable.
GoDaddy is under the leadership of former Yahoo Inc’s Chief Product Officer Blake Irving. Post offering Bob Parsons, the company's founder, will manage 40% of GoDaddy’s class B shares and around 24% of its class A shares.
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