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Afilias cancels $100m London IPO

Kevin Murphy, January 6, 2015, Domain Registries

Afilias has cancelled its planned London Stock Exchange IPO due to “market conditions”.

It seems to be a cancellation, rather than a postponement, according to a company spokesperson.

“The final decision to cancel the IPO was based on market conditions at the time,” she told DI today.

No additional information was available, but I suspect the company was not able to drum up sufficient interest, at its target price, from institutional investors in the two-week period between its IPO filing and its due date.

Afilias said on October 28 that it planned to raise approximately $100 million selling shares on London’s Alternative Investment Market.

The flotation was expected to take place November 12, but that date came and went with no action.

AIM is currently the home of rival TLD registries CentralNic and Minds + Machines, neither of which saw any particular share price problems during that two-week window.

Afilias had revenue of $77.6 million in 2013, making an operating profit of $30.4 million and $45 million in operating cash flow, largely from selling .info and .mobi domain names.

The company is the back-end provider for almost 50 live 2012-round new gTLDs and has a couple hundred more deals with applicants whose strings have not yet been delegated.

Afilias set for $100m London IPO

Kevin Murphy, October 21, 2014, Domain Registries

London’s Alternative Investment Market is fast becoming the stock market of choice for new gTLD registries, with .info mainstay Afilias today announcing an upcoming IPO.

The Ireland-based company hopes to raise $100 million by selling off about 30% of the company, giving it a growth war-chest and giving its investors a shot at getting some of their money back.

Afilias earmarked part of the expected windfall for new gTLD auctions, as well as acquisitions of new gTLD “assets” and operational registries and expansion of its registrar business.

Executive chairman Jonathan Robinson said in a statement:

The Placing will bring significant benefits – by providing further capital to fund our organic and acquisitive growth plans, and raising our corporate profile with existing and new customers.

In addition to .info, .mobi and .pro, Afilias is associated with 254 new gTLD applications either as applicant or back-end provider. As registry, it already has about a dozen 2012-round gTLDs in the root.

The company’s revenue for 2013 was $77.6 million, up from $74.5 million in 2012. Earnings before deductions were $38.6 million in 2013, up from $32.1 million in 2012.

Fellow gTLD registries CentralNic and Minds + Machines are also listed on AIM.

Breaking: Go Daddy files for $100 million IPO

Go Daddy has filed its S-1 registration form with the US Securities and Exchange Commission, signalling its intention to go public.

The filing reveals the company plans to raise $100 million with the share sale.

Go Daddy’s revenue for 2013 was $1.1 billion, up from $910.9 million in 2012, the filing reveals.

But the company said it uses “bookings” as a measure of its success, due to the way its revenue is collected up-front but recognized on its books over the term of the domain or hosting contract.

Bookings were $1.4 billion in 2013, up from $1.25 billion in 2012.

Go Daddy is loss-making, recording a net loss of $199.8 million in 2013 and $279 million in 2012.

The company has 57 million domains under management and hosts 8.5 million web sites, according to the S-1. Those are spread between 12 million customers, a number that grew by 1.3 in 2013.

A surprising 24% of its sales come via its customer service people; the rest comes through its web site.

Go Daddy planned to IPO in 2006, but subsequently yanked the offering due to “market uncertainties” and then-CEO Bob Parsons’ apparent discomfort with the process.

In 2011 the company was taken over by the investment firms KKR, Silver Lake Partners, and Technology Crossover Ventures, paying a reported $2.25 billion for a 65% stake.

Since then, an eventual IPO has not been a matter of if, but when.

I’m tweeting more nuggets from the S-1 as I find them.

Donuts looking for accountant with IPO experience

Kevin Murphy, February 21, 2014, Domain Registries

Anyone want to take bets on Donuts’ exit strategy?

The largest new gTLD portfolio applicant has placed a job ad on its web site for an accountant with “Understanding of SEC and/or IPO related accounting”.

That’s SEC for Securities and Exchange Commission and IPO for Initial Public Offering, of course.

It appears IPO experience is a desired quality of the sought-after individual, rather than a must-have, but it seems to point to where Donuts plans to take the company in future.

Donuts of course now has revenue, and it’s been almost two years since it raised its first $100 million venture capital investment in a funding round led by Austin Ventures.

That a VC-backed tech company should be eyeing an eventual IPO should not come as a surprise to anyone — and I wouldn’t expect to see an S-1 any time soon — but it does look like Donuts is already planning for its exit when it comes to its staffing arrangements.

(Thanks to Silver Siwei Wang for the tip).

Domain.com owner files for $400m IPO, to spend $110m buying Directi

Kevin Murphy, September 10, 2013, Domain Registrars

Endurance International, owner of Domain.com and HostGator, plans to raise up to $400 million in a Nasdaq IPO, and said it will spend up to $110 million of that buying Directi, India’s largest domain registrar.

As part of the proposed acquisition, Endurance has also agreed to bankroll Directi’s new gTLD auctions to the tune of $62 million.

The acquisition is not final, and appears to depend on a number of targets related to the IPO and Directi’s revenue performance. Endurance’s S-1 filing with the US Securities and Exchange Commission reads:

In August 2013, we entered into a master share purchase agreement to acquire all of the outstanding capital stock of Directi from Directi Holdings, the seller, for an amount we estimate will be between $100 million and $110 million in cash or, at the election of the seller, a combination of cash and shares of our common stock, subject to the satisfaction or waiver of specified customary closing conditions and the achievement of specified financial targets.

The acquisition would close in the fourth quarter this year.

As well as running a top-ten registrar (and a few dozen others), Directi subsdiary Radix Registry has 29 active new gTLD applications, 26 of which are contested.

Endurance proposes to help Radix win these contention sets. On new gTLD auctions, the S-1 says:

in connection with our proposed acquisition of Directi, we entered into agreements with entities affiliated with Directi Holdings related to participation in the auction of new top level domain extensions and domain monetization activities, pursuant to which, among other things, we may be obligated to make aggregate cash payments of up to a maximum of approximately $62 million, subject to specified terms, conditions and operational contingencies.

Endurance is a complicated company. Its most familiar brands include Domain.com, iPage, FatCow, Homestead, Bluehost, HostGator, A Small Orange, iPower and Dotster.

But since December 2011 it has been controlled and majority owned by Warburg Pincus and Goldman Sachs, which paid a reported $975 million.

Its annual revenue for the last three calendar years has been $87.8 million, $190.3 million and $292.2 million. It’s currently not profitable, recording a net loss of $139.2 million in 2012.

It has seven million domains under management and had 3.4 million customers at the end of June 2013.

Judging by the S-1, the company has over a billion dollars of debt. Directi acquisition excluded, most of its IPO proceeds would go towards paying off some of that debt.