Oct 11 (Reuters) - Endurance International Group Holdings Inc, a provider of cloud-based services to small and medium businesses, said it expects to raise up to $375 million through its initial public offering.
Endurance plans to sell 23.4 million shares in the offering at between $14 and $16 per share.
The company, which was bought by Warburg Pincus and Goldman Sachs’ GS Capital Partners for about $975 million in November 2011, will have a market valuation of about $2 billion at the top end of its expected price range.
Warburg will own half of the company after the offering, while Goldman affiliates will have a 16 percent stake, according to the IPO filing.
Massachusetts-based Endurance provides web hosting and domain services to small-and medium-sized businesses and has about 3.4 million subscribers across the world.
The company will look to take advantage of a favorable IPO market for cloud-based companies as investors pour money into these firms that operate in niche markets and have strong business models with room for growth.
Cloud-based companies such as Tableau Software Inc, ChannelAdvisor Corp, Textura Corp and Benefitfocus Inc have all been well received in their market debuts.
Spending on cloud-based services among small- and medium-sized ventures is projected to grow by 28 percent to $96 billion between 2012 and 2015, Endurance said in its IPO filing. ()
The company said it expects to record a net loss of close to $30 million on revenue of about $130 million for the three months ended Sept. 30.
Endurance, which last month filed to raise up to $400 million through its IPO, plans to use proceeds from the offering to repay debt.
The company has applied to list its shares on the Nasdaq under the symbol “EIGI”. Goldman Sachs, Credit Suisse and Morgan Stanley are the lead underwriters for the IPO.