GoDaddy Group Inc. is reportedly planning to file for an initial public offering, according to unnamed sources cited by The Wall Street Journal. The company is said to be planning to interview potential underwriters for the purpose of selecting one for its IPO.
GoDaddy to join the IPO rush
GoDaddy Group Inc. offers registration for domain names and website hosting for over 12 million customers around the globe. The company has been around for 17 years, and if it does indeed have an IPO, it would be the latest in a busy IPO rush. Stock indexes have been trading near record highs, and investors have been piling into newly listed companies.
Data from Dealogic indicates that the first two months of this year were the busiest beginning to a year for IPOS since 2007. The next few months are expected to also be busy, with big names like Candy Crush Saga maker King Digital Entertainment PLC and Moelis Co., a boutique investment bank. In October, GoDaddy competitor Endurance International Group Hldgs Inc (NASDAQ:EIGI) went public. Shares of that company rose more than 2% today and have risen about 18% already since its IPO.
Expectations for GoDaddy
Standard & Poor’s Ratings Services estimates that GoDaddy Group Inc.’s revenues will grow by a “high-single-digit percentage rate” this year. The ratings service expects cash profits to grow slightly slower, however, because the company has been making investments in growth. GoDaddy has begun to offer new products and also expand to offer services internationally. In addition, the web hosting provider has begun opening new offices and also a technology center. At this point, the company manages 57 million domain names.
People initially began to notice GoDaddy Group Inc. when the company started to run edgy ads which featured women with very little clothing on. The company has since moved away from those types of ads, however.
