The stock price of GoPro climbed more than 32% from its IPO price of $24 to $31.73 per share
The shares of GoPro Inc
skyrocketed during its initial public offering IPO today. The maker of the most popular and versatile camera offered its stock for $24 a share, the high-end of its proposed price.
GoPro Inc and its shareholders raised approximately $427 million from selling 17.8 million shares. The
stock price of the action camera maker climbed more than 32% to $31.73 per share at the time of this writing, around 2:43 in the afternoon in New York.
GoPro's valuation reached nearly $3 billion
Nicholas Woodman, the founder and CEO of GoPro is the largest shareholder of the company with 49% stake. He founded that company a decade ago, and its market valuation reached nearly $3 billion with the IPO.
The management of the action camera maker plans to use the proceeds from the public offering to repay its debts and to acquire complementary businesses or assets.
The largest consumer-electronics IPO since 1991
GoPro's public offering is the largest consumer-electronics IPO since Duracell International raised $433 million from its debut in 1991, according to Dealogic, a platform provider for brokerage firms, investment advisers and investment banking professionals. Duracell is now a subsidiary of the Procter & Gamble Company
Charlie Anderson, an analyst at Dougherty & Co emphasized in his note to investors that GoPro dominate the action camera market. According to him, "There probably hasn't been a consumer electronics brand as dominant as GoPro has been in its category since the early days of the iPod or iPad."
GoPro is a 'hot brand'
GoPro introduced its first high-definition or HD camera in 2009. According to its
, it already sold more than 8.5 million HD cameras including 3.8 million last year. The cameras of the company are very popular among extreme sports enthusiasts because of its quality and versatility.
David Menlow, president of IPOfinancial.com described GoPro as a "hot brand" and "on fire" given the popularity of its cameras. He emphasized, "First into a market usually gets the largest market share."