GoPro Seeking Value Up to $3 Billion in Camera Maker’s IPO

GoPro Inc., which sold about $1 billion last year in equipment such as cameras to surfers, skiers and sky divers, is seeking a market valuation as high as $3 billion in its initial public offering.

The company intends to sell 17.8 million shares for $21 to $24 apiece, according to an amended prospectus filed today. Given these terms, the San Mateo, California-based GoPro and its selling stockholders could raise as much as $427 million. GoPro intends to use the proceeds for general corporate purposes and to repay debt. The company is expected to set a price for the shares on June 25, data compiled by Bloomberg show.

GoPro has been refocusing the business ahead of its IPO. It plans to pitch itself as a media company, distributing video content, in addition to hardware. The company has also tapped former Microsoft Corp. executive Tony Bates, 47, to become president and added him to the board.

With today’s proposed terms, GoPro and selling stockholders are floating 14 percent of shares outstanding in the IPO, data compiled by Bloomberg show. At the high end of the marketed range, GoPro would have a market value of $3 billion, based on 123 million shares outstanding, according to the data.

Photographer: Patrick T. Fallon/Bloomberg

An attendee holds up a GoPro camera at the company's booth during the 2014 Consumer Electronics Show in Las Vegas, Jan 8. Close

An attendee holds up a GoPro camera at the company's booth during the 2014 Consumer... Read More

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Photographer: Patrick T. Fallon/Bloomberg

An attendee holds up a GoPro camera at the company's booth during the 2014 Consumer Electronics Show in Las Vegas, Jan 8.

GoPro’s revenue jumped 87 percent last year to $985.7 million, mostly derived through cameras and accessories. GoPro posted a $60.6 million profit last year, almost double what it earned in 2012, according to the filing.

At a $21 price, GoPro would have a multiple of 43 times last year’s earnings. That compares less than 40 times at Canon Inc., Sony Corp. and Garmin Inc. -- all listed as competitors in GoPro’s prospectus. Media companies such as 21st Century Fox Inc. and Comcast Corp. fetch about 20 times, data compiled by Bloomberg show.

Selling Shareholders

Chief Executive Officer Nicholas Woodman, 38, founded the company more than a decade ago. Selling shareholders include Riverwood Capital LP, Foxconn Technology Group and Sageview Capital Partners LP. Woodman and employee Neil Dana are also selling stock.

The offering involves Class A shares, which get one vote each, while Class B shares have 10 votes apiece, the filing showed. Class B stockholders will hold 98 percent of the voting power, the filing showed.

JPMorgan Chase & Co., Citigroup Inc. and Barclays Plc are managing the IPO. The underwriters will allocate 1.5 percent of the stock to be offered through Loyal3 Securities Inc., whose platform targets GoPro’s customers to invest $100 to $10,000 each without paying fees.

The company intends to list on the Nasdaq Stock Market under the symbol GPRO.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net James Callan, John Lear

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