GoPro Inc (NASDAQ:GPRO) has filed with the U.S. Securities and Exchange Commission a plan to offer the public $800 million worth of shares. In a report by Reuters, a company spokesman affirmed that the sale will commence in the next few weeks and is expected to complete by November.
In an email to GoPro employees dated November 10, 2014, company founder and chief executive Nicholas Woodman said that he is selling a portion of his shares in GoPro Inc (NASDAQ:GPRO), but noted that this should not be misunderstood, as he is committed to be a significant shareholder of the company for the longest time possible. He said that the company is expecting to raise $100 million from the offering, and that the money raised will be invested in “people, products, potential acquisitions, and infrastructure” to help the company reach its goals.
In the said email, Woodman further explained that the new $800 million public offering is expected to smoothen the gradual sales of shares considering the impending expiration of the company’s initial IPO lock-up by December 22. He further noted that the new offering also intends to cushion the impact of the lock-up expiration to company stock price. To help stabilize share price, larger shareholders who participate in the offering will sign a new lock-up agreement valid for 90 days.
GoPro Inc (NASDAQ:GPRO) shares has declined about 3% after the announcement of the public offering. Closing at about $79 on Friday, it is now trading at about $75. It was initially priced at $24 apiece in June during the company’s initial public offering of $491 million.
GoPro Inc (NASDAQ:GPRO) has realized a 46% increase in revenue from sales for the third quarter compared to the same period last year, surpassing estimates from Wall Street. The strong sales is attributed to the strength of the company’s camera lineup which includes the Hero 4, a model capable of creating 4K video. A figure of $0.12 per share in adjusted earnings was reported as against estimates of $0.08. Revenue is in the amount of $280 million, beating estimates of $266 million.
This article has been written by Nonito Guntan.