Shares of web hosting and domain name company GoDaddy price above expectations ahead of its public trading debut. Jeanne Yurman reports.
GoDaddy the web hosting company best known for its outrageous Superbowl ads, goes public today. Shares have priced above the expected range of $17 to 19 at $20, pegging GoDaddy's value at $4.5 billion including debt. The company stands to raise roughly $440 million with around 22 million shares being offered. It's been a sleepy IPO market so far this year. But the GoDaddy IPO may help to wake things up. Investors have been quite eager for GoDaddy to enter the public markets. Jacqueline Kelley a partner in Ernst & Young's Strategic Growth Markets says: "Pricing above it's range is not unexpected, given GoDaddy was the largest IPO in the pipeline today and the overall interest in investing in brand name technology companies. GoDaddy is a mature company, which offers investors solid cash flow and long-term growth opportunities." Started in 1997 GoDaddy is a giant in the online domain name business with 13 million customers. And it has evolved beyond its core business to offer services like web hosting and website building to small and medium-sized businesses. GoDaddy marks one of several high profile IPOs this year which have included online storage provider Box and burger chain Shake Shack. It will trade under the ticker symbol G-D-D-Y.