Jun 12 2014, 6:11am CDT | by Forbes
Action camera maker GoPro has set terms for its initial public offering later that could value the company at nearly $3 billion.
An updated financial filing with the Securities and Exchange Commission unveiled this morning showed that the San Mateo, Calif. company and its existing shareholders plan to sell a combined total of 17.8 million shares in the offering. GoPro expects to price the sale between $21 and $24 a share, with the high point of that range valuing the hardware firm at about $2.96 billion.
Among those selling shares include founder and CEO Nicholas Woodman as well as professional surfer Kelly Slater, who seems to have received shares in promotional and consulting deals with the company. A GoPro-sponsored athlete, Slater is selling 73,500 shares, representing 35% of his existing position in the company. After taxes, he could cash in on a cool $1.1 million.
A GoPro spokesperson did not immediately return requests for comment.
If GoPro were to attain a $3 billion valuation in the offering, the company would be trading at nearly three times 2013 sales, which clocked in at $986 million last year. In comparison Canon carries a price-t0-sales multiple of about 1.29, while Sony's is less than .23. The IPO price range also places the company above the $2.25 billion it was valued at when electronics manufacturer Foxconn (also known as Hon Hai Precision Company) bought an 8.88% stake in GoPro in late 2012.
Woodman, the largest shareholder in the company, will sell about 6% of his existing shares in the offering, and will own nearly 48% of the company with his wife Jill Woodman after the offering. Interestingly, the IPO will feature a number of other sellers–many of them Woodman’s closest friends and family–who the founder relied on in building his camera company over the last decade. Among those cashing out in the IPO include Woodman’s mother, father and stepfather, who provided early funding to his company; as well as the CEO’s former assistant, sisters and first employee Neil Dana.
At GoPro’s $3 billion valuation, Woodman would be worth about $1.6 billion.
GoPro, which hired former Microsoft executive Tony Bates earlier this month as its new president, could also possibly increase the amount of shares being offered in the IPO if banks including JPMorgan and Citigroup exercise their over-allotment option. That option could take the total number of shares sold in the offering to 20.5 million.
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Red hot GoPro 100% above IPO price. What now?— BurlesonX_W 28 min 15 sec ago.
GoPro's Revenue Rises, But Its Shares Fall - GoPro, in its first earnings report after its IPO, reported better-th... t.co/c9yWFK4AH0— uncappedtv 29 min 44 sec ago.
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