GoPro, the maker of highly versatile sports cameras and accessories, aims to sell 17.8 million shares at a price range of $21 to $24 per share during its initial public offering (IPO) according to its Form S-1 recently submitted to the Securities and Exchange Commission (SEC).
The sports camera maker expects to raise as much as $427.2 million at the top end of the offering price range, which would give GoPro a valuation of around $3 billion.
GoPro: Two classes of common stock
According to the regulatory filing, GoPro has two classes of common stock—Class A and Class B. The sports camera maker is offering 8.9 million shares of Class A common stock and current (insider) shareholders will also sell 8.9 million shares of Class A common stock during the IPO. It will not receive any proceeds from the sale of the shares by its current stockholders.
GoPro explained that the rights of the shareholders of its Class A and Class B common stock are similar except for the voting and conversion rights. The sports camera maker explained that the each share of the Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to 10 votes and is convertible into one share of Class A common stock anytime.
According GoPro, the shareholders of its outstanding Class B common stock holds approximately 98.4% of the voting power of its outstanding capital stock after its IPO. The executive officers and directors as well as their affiliates holds around 72.8% stake in the company. GoPro CEO Nicholas Woodman will hold 47.7% stake in the company after selling more than 3,562,892 shares of Class A common stock during the IPO.
GoPro will be trading its Class A common stock at the NASDAQ Global Select Market under the symbol “GPRO.”
Financial performance
GoPro’s financial performance increased steadily over the past three years. The company’s net income rose from $24.6 million to $32.3 million in 2012 and almost doubled to $60.6 million in 2013. Its revenue also increased from $234.2 million in 2011 to $526 million in 2012 and $985.7 million in 2013.
For the first quarter of 2014, GoPro generated a net income of $11 million and $235.7 million in revenue.
According to GoPro, it sold more than 8.5 million high-definition cameras, including 3.8 million in 2013. The company launched its first HD camera in July 2009. The sport camera maker sells its products through 25,000 retail stores in more than 100 countries.
The NPD Group’s Retail Tracking Service reported that GoPro was the number one selling camcorder and the sixth top selling camera accessory company (by dollars and units) in the U.S. in 2013. GoPro’s HERO cameras account for a 45% share of the camcorder market in the country.
GoPro took advantage of the new JOBS Act and quietly filed for an IPO last February. The company also named former QUALCOMM, Inc. (NASDAQ:QCOM) executive Jack Lazar as chief financial officer.
