GoDaddy seeks up to $2.87 billion valuation in IPO

GoDaddy Inc., the provider of domain names and website hosting, is seeking a valuation of as much as $2.87 billion in an initial public offering.

The company is offering 22 million shares at $17 to $19 each to raise as much as $418 million, a regulatory filing shows. GoDaddy is seeking a market value between $2.57 billion and $2.87 billion, according to Thursday's filing.

GoDaddy's IPO comes more than three years after a group led by KKR & Co. and Silver Lake Management acquired the Scottsdale, Arizona-based company for $2.25 billion. Now that the price range is set, GoDaddy can officially begin marketing the sale to investors.

GoDaddy is seeking a valuation at a discount to other Web-services providers. At the high end of the range, GoDaddy would fetch a multiple of about 2.1 times last year's sales, while Endurance International Group Holdings Inc., which provides Internet hosting, trades at 3.7 times and Cognizant Technology Solutions Corp., a consulting firm, trades at 3.1 times, data compiled by Bloomberg show.

In 2014, GoDaddy posted $1.39 billion in revenue, a 23 percent jump from the prior year. Its net loss narrowed to $143.3 million over the same period, from $200 million in 2013, the filing showed.

GoDaddy plans to use the proceeds for a one-time payment to KKR, Silver Lake and other current owners, as well as to repay debt and for general working purposes.

Morgan Stanley, JPMorgan Chase and Citigroup are managing the offering. GoDaddy plans to list its shares on the New York Stock Exchange under the symbol GDDY.