Cloud solution provider Endurance International Group debuted its initial public offering on NASDAQ today with approximately 21.1 million shares priced at $12 each.
The Burlington, MA-based company serves approximately 3.4 million subscribers through a family of brands including Bluehost, HostGator, Domain.com, FatCow, iPower and iPage. It currently employs around 2,500 people.
Shares of EIG were off to a rocky start with stock prices dropping a dollar, or 8.3 percent, to around $11 in mid-afternoon trading on Friday.
The scale of EIG’s IPO was smaller than anticipated having raised about $253.2 million of the $400 million it had planned.
EIG reported an 18 percent CAGR of organic revenue between 2010 and 2012, which investor news site Seeking Alpha found “not particularly impressive.” Still, as some have noted, EIG’s reported revenues may have been understated.
Seeking Alpha was also disappointed by its 10 percent subscriber growth over the past six months compared to the same period last year, and 1 percent increase in revenue per subscriber.
EIG’s main competitors are Web.com Group Inc. (publicly traded on Nasdaq) and Go Daddy Group Inc. (owned by private-equity firms KKR & Co. and Silver Lake Partners).
EIG is known for acquiring mass-market hosting brands, and Endurance itself was bought by private equity firms Warburg Pincus and GS Capital Partners in 2011 for around $975 million.