GoPro expects to sell 17.8 million shares priced at between $21 and $24 per share, valuing the company at nearly $3 billion.
GoPro operates in a fiercely competitive market which includes camera makers such as Canon
(CAJ) and Nikon
(NINOY), consumer electronic giants and smartphone makers such as Samsung
(SNE) and Apple
(AAPL), specialty equipment makers like Garmin
(GRMN), as well as Google
(GOOGL) whose Google Glass has been used by skydivers.
However, GoPro's strength lies in its management team, which includes its charismatic founder and executives from Microsoft (MSFT) and Qualcomm (QCOM), its large customer base, a powerful brand and a strong track record of growth.
>>Read More: Will GoPro IPO Wipe Out or Live Up to All This Hype?The IPO market has been going hot this year. So far, 144 companies debuted raising more than $30 billion. However, there hasn't been any activity in the consumer electronics space since Skullcandy (SKUL) got listed in mid-2011. GoPro expects to raise nearly $400 million from the offering which will be used for repaying a $111 million term loan, making acquisitions and for general corporate purposes. GoPro was founded in 2004 by Nick Woodman, a surfer and a self-made billionaire, and shipped its first camera that year. This year, the company will likely generate more than $1 billion in revenues, primarily coming from the sale of its flagship HERO line of cameras and accessories. GoPro has recently made some high-profile appointments at its top. This year, the company hired Microsoft's former vice-president for business development Tony Bates as its president and Qualcomm's executive Jack Lazar as its CFO.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts