It`s headed for the largest consumer-electronics debut in 23 years today, as GoPro, the video-camera maker is going public. So far, the company has been privately held, but now it is open for the public.
The latest consumer-electronics IPO was in 2011. Headphonemaker Skullcandy Inc raised $189 million in their debut. We had another deal in the same sector when another headphone company called Beats ElectronicsLLC agreed to a $3 billion buyout by Apple Inc.
GoPro plans to sell as much as $427 million stocks in the IPO today, and that would mark the largest consumer-electronics IPO since Duracell`s debut in 1991. They raised $433 million at that time, and Procter & GambleCo bought the company six years later.
GoPro will raise $427 million by offering 17,8 million shares (50% insider) at $24, the high-end of the $21 – $24 range. At the IPO price, GoPro will have a fully diluted market cap of $3,5 billion and an enterprise value of $3,3 billion.
GoPro will list on the NASDAQ and their trading symbol will be GPRO. Barclays, City and J.P. Morgan acted as joint bookrunners on the deal, and analysts at the bank expect the deal to value it at about 25 times projected earnings.
If the price of GoPro is $24, the company would have a richer price/earnings ratio than Apple Inc, which trades at about 13 times analysts 2015 profit forecast. Garmin Ltd trades at 20 times.
The bull market in initial public offerings rolls on, and so far in 2014, there have been 144 U.S IPO`s, raising $30 billion. This puts the IPO market on pace for the busiest year since 2000, both by dollar volume and number of deals.
The question mark now is whether the GoPro`s shares are being priced appropriately.
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