US-based high-definition camera maker GoPro set the range of its initial public offering at $21-24 yesterday, and could now raise as much as $427.2m in a flotation that could value it at up to $3bn.
Foxconn and Disney-backed GoPro’s initial IPO filing designated a $100m target, but the company will now seek to issue 8.9 million shares, with a further 8.9 million to be sold by current shareholders.
Foxconn, which invested $200m in GoPro in 2012, will sell approximately 737,000 of its 11.7 million shares, which could give it an initial return of up to $17.7m. Should GoPro float at the upper end of its range, Foxconn’s stake will now be worth about $275m.
Steamboat Ventures, the Sino-American venture fund affiliated with The Walt Disney Company, will divest 218,000 of its 3.5 million shares, which would generate a return of up to $5.2m.
GoPro has so far raised $288m, with other investors including Riverwood Capital, US Venture Partners, Sageview Capital and Walden International.
The company plans to use its share of the proceeds to repay a term loan with an outstanding balance of $111m, and may also invest some to acquire or invest in complementary businesses, technologies or assets.
Underwriters J.P. Morgan Securities, Citigroup Global Markets, Barclays Capital, Allen & Company, Stifel, Nicolaus & Company, Robert W. Baird & Co., MCS Capital Markets, Piper Jaffray & Co. and Raymond James & Associates have the option to buy an additional 2.67 million shares, which could lift the size of the IPO to $491.3m.