Go­Daddy shares up 31% in IPO

In­vestors push value of Web-host­ing firm to $4 bil­lion on first day its stock trades.

Los Angeles Times - - BUSINESS - By Dean Stark­man dean.stark­man @la­times.com

NEW YORK — Shares of Web-host­ing com­pany Go­Daddy Inc. soared nearly 31% in their first day of trad­ing, an­other sign of strength in the tech sec­tor in an oth­er­wise lack­lus­ter stock mar­ket.

In­vestors pushed the share price to $26.15 on Wed­nes­day from its $20 ini­tial public of­fer­ing price. The closing price val­ues the com­pany at nearly $4 bil­lion. The stock, trad­ing un­der the sym­bol GDDY on the New York Stock Ex­change, hit a high of $26.84 dur­ing trad­ing.

The Scotts­dale, Ariz., com­pany, per­haps best known for its racy tele­vi­sion ads, jacked up the num­ber of shares it of­fered to 23 mil­lion, a mil­lion more than it had planned, be­cause of strong mar­ket de­mand. It raised more than $460 mil­lion in the IPO.

The IPO comes as the com­pany is en­gaged in the tricky task of over­haul­ing its flam­boy­ant im­age, ce­mented by its edgy Su­per Bowl com­mer­cials fea­tur­ing su­per­model Bar Re­faeli and race car driver Dan­ica Pa­trick.

The com­pany now wants to be seen as a se­ri­ous and re­li­able provider of Web host­ing and other In­ter­net ser­vices for the hotly con­tested small busi­ness mar­ket.

In its of­fer­ing state­ment filed with the Se­cu­ri­ties and Ex­change Com­mis­sion, the com­pany in­cluded a lengthy state­ment of risks to the stock:

“Some of our past ad­ver­tise­ments have been con­tro­ver­sial,” it said. “There can be no as­sur­ance that we will suc­ceed in repo­si­tion­ing our brand, or that by do­ing so we will grow our to­tal cus­tomers, in­crease our rev­enue or main­tain our cur­rent high level of brand recog­ni­tion.”

The strong re­cep­tion to the stock’s de­but comes as the tech-heavy Nas­daq in­dex, once known for its volatil­ity, re­cently crossed the sym­bolic 5,000-point thresh­old. Most an­a­lysts see lit­tle or no sign of a bub­ble and many ex­pect con­tin­ued profit growth.

For the day, the Nas­daq lost 20.66 points, or 0.4%, to 4,880.23. It is up 3% this year; the broader Stan­dard & Poor’s 500 is barely pos­i­tive this year, and the blue chip Dow Jones industrial av­er­age slipped into the red year to date.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.