GoPro to give customers, fans access to IPO stock at Wall Street price
Personal camera manufacturer GoPro, which sells durable action accessories that connect to Apple's iPhone, is taking the relatively unusual step of making an allowance for stock to be sold to individual investors during its initial public offering, allowing customers and fans to purchase shares before trading begins.
GoPro is expanding on the common practice of offering IPO shares to "friends and family," allocating 1.5 percent of the issue to be sold via social IPO platform Loyal3. Company founder Nick Woodman said the move was designed to thank GoPro's customers for their support during the business's formative years.
"While with most IPOs, 'friends and family' are defined as a few select people, with our IPO, all of our customers and fans who love and support our brand are considered our friends and family," Woodman said in a statement. "If it weren't for you, we wouldn't be here today, and not a day goes by when we don't realize and appreciate that."
U.S. residents can take part in the IPO on a first-come, first-served basis by opening a Loyal3 account with at least $350 and making an investment between $100 and $10,000 in GoPro shares. GoPro expects to price its shares between $21 and $24 per share.
GoPro famously began as Woodman's pet project to create a better camera for capturing surfing footage, and the rugged shooters have now become a favorite of both amateur and professional cinematographers when capturing action shots. Longtime Microsoft executive Tony Bates, who left the software giant after being passed over as former CEO Steve Ballmer's successor, now serves as GoPro's president.
AppleInsider reviewed the company's latest flagship camera, the Hero3+ Black Edition, last fall, and found it to be an outstanding addition to Apple's iOS ecosystem of connected devices. Sporting built-in wireless connectivity, the device can connect to the official GoPro app for iPhone, allowing remote control and viewing of the device.
GoPro is expanding on the common practice of offering IPO shares to "friends and family," allocating 1.5 percent of the issue to be sold via social IPO platform Loyal3. Company founder Nick Woodman said the move was designed to thank GoPro's customers for their support during the business's formative years.
"While with most IPOs, 'friends and family' are defined as a few select people, with our IPO, all of our customers and fans who love and support our brand are considered our friends and family," Woodman said in a statement. "If it weren't for you, we wouldn't be here today, and not a day goes by when we don't realize and appreciate that."
U.S. residents can take part in the IPO on a first-come, first-served basis by opening a Loyal3 account with at least $350 and making an investment between $100 and $10,000 in GoPro shares. GoPro expects to price its shares between $21 and $24 per share.
GoPro famously began as Woodman's pet project to create a better camera for capturing surfing footage, and the rugged shooters have now become a favorite of both amateur and professional cinematographers when capturing action shots. Longtime Microsoft executive Tony Bates, who left the software giant after being passed over as former CEO Steve Ballmer's successor, now serves as GoPro's president.
AppleInsider reviewed the company's latest flagship camera, the Hero3+ Black Edition, last fall, and found it to be an outstanding addition to Apple's iOS ecosystem of connected devices. Sporting built-in wireless connectivity, the device can connect to the official GoPro app for iPhone, allowing remote control and viewing of the device.
Comments
From insiders who know, they say Tony Bates leaving Microsoft was a very good thing and woe unto GoPro for hiring him.
Would those "insiders" be MS stockholders so desperate to get MS stock moving upwards a bit that they would say pretty much anything?
-kpluck
No, they are not.
If it's only 1.5% of the total shares being offered, then wont those go pretty quickly?
I think this is a risky investment. I realize they are cool and well-built but what's to stop a some one from coming along tomorrow with a competitive offering? Reminds me a lot of Flip cameras. They too owned their market, then all of a sudden here one day and gone the next. Granted they were bought and then destroyed from within by Cisco, seems too easy that something similar could happen here.
If it's only 1.5% of the total shares being offered, then wont those go pretty quickly?
Well, yes, that's the point. The company wants high share demand to drive up the stock price.
People who don't get in on the IPO whether via their broker or Loyal3 will then have to consider buying shares on the open market if they want a position.
Well, yes, that's the point. The company wants high share demand to drive up the stock price.
People who don't get in on the IPO whether via their broker or Loyal3 will then have to consider buying shares on the open market if they want a position.
Getting shares for $21-$24 sounds like a good deal, if it opens up a lot higher on day one. I guess there's always the risk that it can drop on day one, and that would obviously suck.
I'll probably just wait until it starts trading on the open market and see how it performs.
It offers them nothing.
Hey, Thanks for that tip Apple11.
Stock market theory has always troubled me - now it has become clear.
Hey, Thanks for that tip Apple11.
Stock market theory has always troubled me - now it has become clear.
Who's talking about tips? I'm not giving out any tips here, I was just thinking out loud.
Getting shares for $21-$24 sounds like a good deal, if it opens up a lot higher on day one. I guess there's always the risk that it can drop on day one, and that would obviously suck.
I'll probably just wait until it starts trading on the open market and see how it performs.
Stocks drop all the time on IPO, look at Facebook IPO it took months before it recovered to the initial IPO price. Plus if you read page 42 of the prospectus it CLEARLY states, "If you purchase shares of our Class A common stock in this offering, you will experience substantial and immediate dilution of $20.44 in the net tangible book value per share after giving effect to this offering, based on an assumed initial public offering price of $22.50 per share, which is the midpoint of the range set forth on the cover page of this prospectus, because the price that you pay will be substantially greater than the net tangible book value per share of the Class A common stock that you acquire. This dilution is due in large part to the fact that our earlier stockholders paid substantially less than the initial public offering price when they purchased their shares of our capital stock...."
So you initial investment WILL drop on the initial day BUT it should be expected. You are investing on the long term and not some short call orders. With that said, does one invest based on feelings... NO, you should never invest based on feels, if you use the product, etc. You invest on a combination of the people, the market, the brand, etc. etc. but ALWAYS with the long term mentality.
If you don't have the money to lose or expect to get in and then get out, this is not for you! If you have a little money to invest and potentially lose, understand that this is a mid-term hold, then sure go for it.
Just my insight.
So you initial investment WILL drop on the initial day BUT it should be expected.
But if that's the case, then why bother to grab any special IPO shares, when somebody could just buy it cheaper on the open market when it begins trading, if it will drop, and pick them up for cheaper?
I'm referring mostly to trading on day one, the day it makes its' debut on the market.
Who's talking about tips? I'm not giving out any tips here, I was just thinking out loud.
I think he missed the /s
But if that's the case, then why bother to grab any special IPO shares, when somebody could just buy it cheaper on the open market when it begins trading, if it will drop, and pick them up for cheaper?
I'm referring mostly to trading on day one, the day it makes its' debut on the market.
Yes, and I understand... it's the company, investors, banks, backers and employee objective to get as much PR and hype around the stock as possible. It's not always about the price but also about the volume. Movement of stock is GREAT for the company and aforementioned involved. Additionally, the structure of this nature allow for the investment withOUT cost per trade, fees, etc. and for a lot of self investors, waiting is better especially if you are doing some volume ($20-50k+), where one investment only cost you the $7-50 that a your investment site (etrade, scotttrade, trade king, etc) charges you. If you are only investing $500, then the $10 to get in and fees to get out effect your actual ROI. It's an amateur fault to think, "I got it at $20 and selling at $40, so I doubled my money." No, no you didn't because you have to calculate fees, taxes, bank fees, etc. you might have made out with 30% not 200%. As the famous saying (of the rich) goes, watch the pennies and the dollars take care of themselves. (actually, it's a British saying). Clearly, I'm not an expert and just getting into investing in IPO, etc but I'm learning from those who make serious money and figuring out, it's not a simply get in early, make money, sell, get out with more money... sometimes it's get in lose... hold your ground and hope for the best. There is 100% guarantee you WILL lose money, but it's your job to minimize that risk, be completely prepared for it, don't act on emotions and learn to celebrate the wins and shrug off the losses.
I would be willing gamble on the IPO if I can get in.