GoPro Stumbles On Secondary Stock Offering
Less than five months after its initial public offering, action camera maker GoPro (NASDAQ:GPRO) announced a follow-on stock offering in a regulatory filing on Monday.
GoPro plans to sell $100 million in new shares and allow some large shareholders in the company to unload some of their stock. Founder and CEO Nicholas Woodman is among the sellers. All told, some $800 million in GoPro stock is expected to hit the market from the actions.
Investors typically frown on senior executives cashing in their stock so soon after an IPO. GoPro shares were down about 4% near 76 in afternoon trading on the stock market today.
GoPro went public on June 26 at 24. It hit an all-time high of 98.47 on Oct. 7.
In an email to employees, included with the regulatory filing, Woodman said the $100 million the company expects to raise in the secondary offering would “provide us with additional resources to invest in people, products, potential acquisitions, and infrastructure to help us achieve our long-term vision.”
Woodman said the decision to allow major shareholders to sell some of their stock before the IPO lockup period ends on Dec. 22 is a way to reduce the impact on shares from the lockup expiration. It will provide “a more orderly and gradual sale of shares than what might otherwise occur when the IPO lock-up ends,” he said.
“I plan to sell a portion of my holdings in GoPro, but no one should misunderstand my commitment to the company or our vision,” Woodman said. “As I told investors on our earnings call last week, I plan to be a significant shareholder in GoPro for a long time. I’m a huge believer in our vision and our ability to realize it.”
Read More At Investor’s Business Daily: http://news.investors.com/technology/111014-725722-gopro-falls-on-follow-on-stock-offering.htm#ixzz3Ihwed1Aa
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