GoPro Craters 9.3% After Pricing Its Secondary Offering At A Discount

GoPro fell more than 9 percent today, after it priced its secondary offering at $75 per share, a discount to its market price. The company ended regular trading today at $71.74 per share, or a several dollar negative delta to the proposed price.

The company will sell 1,287,533 itself, while prior shareholders will sell 9,072,967. Underwriters of the sale may purchase 1,554,075 shares as well inside of a 30 day period. So, dilution to GoPro investors won’t be too heavy, but certainly seeing current shareholders get rid of more than 9 million shares worth — at the proposed $75 price — $680,472,525, doesn’t inspire confidence.

In fact, you almost wonder why the company is raising new capital for itself at all. GoPro ended its last quarter with $237.7 million in cash and equivalents. The proposed sale of new equity would add just under $100 million to its accounts.

GoPro has had a wild ride in the public markets since its debut. Priced at $24 per share, the company has traded as high as $98.47. You can see the spikes and declines here:


I called the company’s listed contact concerning the secondary offering, and left a message asking about potential pricing changes for the secondary offering, given the company’s steep slip in value over the past few days.