NEW YORK ( TheStreet) -- GoDaddy priced its IPO beyond its earlier pricing range and bumped up the offering by 1 million shares on Tuesday, a move that signals the strong interest its IPO has spurred among investors. GoDaddy priced its IPO at $20 a share, raising $460 million by selling 23 million shares, according to a report in The Wall Street Journal.
GoDaddy, which sells Web domains and services designed to assist its customers' efforts to expand their businesses, previously set a pricing range of $17 to $19 a share that it would select from to set its IPO price. But apparently investor demand was strong enough to set the price of the IPO at $20 a share and offer 23 million shares, rather than its previous plans of 22 million shares.
The Scottsdale, Ariz.-based company, will trade on the New York Stock Exchange under the ticker "GDDY." Typically, once a company prices its IPO, its shares begin to trade on the market the following day. A report in Reuters indicates that is the expected scenario.
GoDaddy ranks as the second largest technology IPO this year, behind the $600 million raised by Inovalon (INOV) - Get Inovalon Holdings, Inc. Class A Report, which went public on Feb. 12. When Inovalon went public, its shares soared 10% on its first trading day. Inovalon priced its IPO at $27 a share, $1 above the high end of its pricing range like GoDaddy chose to do, and that technology company rose even further once it started trading.
So far this year, only 33 companies have gone public in the U.S., which is down 48% from a year ago during this same period. And to date, only three companies have launched an IPO Inovalon, Box (BOX) - Get Box, Inc. Class A Report and MaxPoint Interactive (MXPT) .
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.