GoPro (GPRO) Announces Pricing on Secondary Public Offering
Shares of GoPro Inc. (GPRO) were trading down -4.84 or -6.12 percent to $74.25 in this morning's premarket after the company announced the price of a secondary offering of stock late yesterday after the market close. GoPro announced the offering through a regulatory filing late Monday. GoPro stock closed down -5.01 or -5.96 percent to $79.09 per share in Wednesday's regular trading session.
In a filing with the U.S. Securities and Exchange Commission late Monday, GoPro said it would offer 11.9 million shares of stock in a secondary offering, with founder and Chief Executive Nick Woodman reportedly selling 4.1 million shares. The list of sellers includes GoPro itself, Riverwood Capital and Foxteq Holdings.
GoPro had initially filed for a secondary offering of $800 million of common stock on November 10th, raising the amount to $930 million in its most recent filing. Yesterday afternoon, GoPro announced that it would offer an aggregate total of 10,360,500 shares of its Class A common stock at a price to the public of $75.00 per share. The company itself will sell 1,287,533 shares, while selling stockholders including Nick Woodman will sell 9,072, 967 shares.
Also, an additional 1,554,075 Class A common shares will be offered to the underwriters through a 30-day option granted by the selling stockholders. The company will not receive any of the proceeds from the sale of shares by the selling stockholders.
Barclays, Citigroup and Morgan Stanley will be acting as book running managers with J.P. Morgan acting as lead book running manager. Co-managers for the offering include Allen & Company LLC, Baird, JMP Securities, Piper Jaffray, Stifel and Raymond James.
GoPro stock has been on a roller coaster since the initial filing with the SEC on Monday. The stock gained more than +5 percent to $85.57 on Tuesday after the news. Nevertheless, on Wednesday, the stock dropped almost -6 percent, but rallied sharply in afterhours trading after the company announced the pricing of the secondary offering.
Despite this morning and yesterday's declines in the stock, which have brought it down over 11 percent, GoPro stock is still triple its IPO price of $24 per share. The company reported better than expected earnings for the last quarter, earning $0.12 and beating estimates by $0.04 per share. GoPro is expected to earn $0.69 per share on $574 million in sales in the holiday quarter, which could see the stock test its yearly highs in the near term.
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