Many Texas residents use the services of GoDaddy, and even more are probably familiar with its racy Super Bowl commercials. Two persons close to the situation have acknowledged that The GoDaddy Group Inc is getting ready for its second run at an initial public offering. The company is currently in the step of selecting underwriters for its IPO.
In addition to gaining recognition for its television commercials, the company, founded in 1997, provides domain name registry and web hosting services. A private equity group led by KKR & Co and Silver Lake acquired GoDaddy for $2.25 billion in 2011.
The company came close to an IPO in 2006, but they were told that they would have to take a 50 percent reduction to the value of assets being used as collateral for the offering. Instead, the company pulled its offering. No one from GoDaddy or its current owners have offered comments on the potential IPO.
As this article indicates, there are procedures, laws and regulations that must be followed when a company wants to begin offering ownership of its shares to the public. An IPO often generates a lot of attention to the company. The SEC may try to make sure that the information that the company provides to potential investors is factual and available publicly, and the costs of noncompliance with certain requirements may be heavy. Legal advice and guidance may be essential throughout the process. A lawyer working with the company may be able to provide legal perspective during the raising of capital after reviewing the company's products, competitors and business plan.
Source: Reuters, "GoDaddy eyes initial public offering: sources", Greg Roumeliotis and Nicola Leske, March 14, 2014