GoPro goes public: Camera maker up 30 percent
- Associated Press
- June 26, 2014 - 2:45 PM
NEW YORK — Wall Street has a taste for adventure.
Investors sent shares of GoPro Inc. up more than 30 percent in their stock market debut Thursday, following an initial public offering that valued the sports camera maker at about $3 billion.
The company makes wearable sports cameras that are used by skydivers, surfers and other extreme sports fans to film themselves as they create first-person videos that capture the experience as they saw it. The cameras, which are light and waterproof, cost between $200 and $400. It also sells accessories such as cases, battery packs and mounts that help users attach their cameras to surfboards, helmets or their wrists. Users can download a free app or computer software to edit, store and publish their videos to their social media accounts, including Facebook, Instagram, Twitter and YouTube.
GoPro had the best-selling camcorder last year, according to government paperwork filed by the company. Its revenue jumped to $985.7 million in 2013, nearly double what it was a year earlier. However, in the first three months of 2014, revenue fell 7.6 percent to $235.7 million from a year ago.
With its IPO, GoPro and selling shareholders raised $427 million after selling 17.8 million shares at $24 each. The proceeds from the IPO could rise to $491 million if underwriters use their 30-day option to sell 2.67 million more shares.
The San Mateo, California, company plans to use its share of the money raised to pay down debt.
GoPro shares rose $7.73, or 32 percent, to $31.73 in afternoon trading Thursday after rising as high as $33 earlier. The stock is listed on the Nasdaq stock exchange under the symbol "GPRO."
Two other companies also made their stock market debut Thursday:
— ServiceMaster Global Holdings Inc., the parent company of Terminix, Merry Maid and other service franchises, raised $610.3 million after offering 35.9 million shares at $17 per share. That's below the $18 to $21 per share range it had expected. The company, which offers home pest control, home cleaning and warranties on home appliances, plans to use the money raised to pay back debt and other fees. Its shares, which are listed on the New York Stock Exchange under the symbol "SERV," rose 74 cents, or 4.4 percent, to $17.75. ServiceMaster is based in Memphis, Tennessee.
— TCP International Holdings Ltd., which makes energy-efficient lamps, bulbs and fixtures sold at The Home Depot and Walmart stores, raised about $78.6 million after offering more than 7.14 million at $11 per share. That's below the range of $13 to $15 per share it expected. It plans to use the money raised to expand its manufacturing capacity and pay down dept. The Swiss company's shares, which are traded on the NYSE under the symbol "TCPI," fell 75 cents, or 6.8 percent, to $10.25.
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