The famous wearable camera manufacturer GoPro Inc. (NASDAQ:GPRO) is planning to sell about $800 million worth of A class common shares. The company plans to file the S-1 Form in accordance with United States Securities and Exchange Commission on this coming Monday. GoPro will be offering $100 million in new shares whereas, the remainder amount will be provided by the shareholders selling their shares. The company expects to revive its capital and make better sales in the market.
GoPro (NASDAQ:GPRO) is one of the leading and most versatile camera manufacturers and the company also offers addons and accessories for almost every outdoor activity. GoPro (NASDAQ:GPRO), has built its dedicated application software which allows users to interect with others and share their moments with one another. In fact, GoPro (NASDAQ:GPRO) mentioned in their filing that the company is taking this step in order to raise GoPro’s (NASDAQ:GPRO) sales and elevate its revenue.
Moreover, this strategy will provide an even and a better distribution of stocks to attract more people towards the company with regards to the existing stockholders, who will be selling their shares. These steps will make sure that the company stays profitable and above all manages to gain capital. According to statistics, there were about 99.76 million “B” class stocks and about 26.29 million “A” class stocks till 30th September.
Most of the stocks belong to the renowned Woodman Family Trust, which is being run by GoPro’s (NASDAQ:GPRO) executives; their founder Nicholas Woodman and CEO Jill Woodman. Turns out that the family trust owns almost 45 million “B” class shares, which are somehow equivalent in price to “A” class shares, but each “B” class share is entitled for 10 votes. However, the filing report does not point that how many stocks would be sold and who will sell these 5% shares.
After judging the IPO’s current position it seems quite legitimate to make this decision. We have seen that the recent increment in GoPro’s (NASDAQ:GPRO) shares since the IPO presented in June, where almost 20 million shares have tripled with prices of $24 per share. The current IPO lockdown tenure will come to an end on 23rd December and after that, all the class “A” and class “B” shares will be free to trade (virtually) after that date. However, the company (NASDAQ:GPRO) has not yet specified a date in their S-1 Form; which was filed on Monday.
The company’s CEO mentioned in one of his emails that this sudden selling of stocks must not be confused with deviation from our vision. The CEO says that we are one of the largest stockholders of GoPro (NASDAQ:GPRO) and plan to stick with it and provide maximum benfit to the company. He said that the effects caused by the present IPO lockup may be avoided and neutralized through these steps. In fact, sales have gone up by 46% during the third quarter and the stock prices have risen from $24 to $79 during these 6 months.