GoPro Inc. raises 427 million dollars in IPO that prices the company at high end of analysts’ expectations

The Initial Public Offering of the manufacturer of wearable cameras used primarily by extreme sports enthusiasts – GoPro Inc. – raised a total of 427 million dollars after the companys shares were priced at the top end of marketed range.

GoPro Inc. made a statement revealing that the company and its existing shareholders managed to sell 17.8 million shares at the price of 24 dollars apiece. The company had forecast $21-to-$24 range, a regulatory filing showed.

According to data compiled by Bloomberg, the market valuation of the company is estimated at 2.95 billion dollars, taking the price reached at the Initial Public Offering. According to Dealogic, the sale raised 427 million dollars, but the sum could rise to 491 million dollars, as there is an opportunity for underwriters to purchase additional shares. Such a result would beat the $431 Initial Public Offering of Duracell International Inc. in 1991 and would make the biggest consumer-electronics IPO on record.

The great performance of the company at its IPO that priced it at the high end of initial expectations, emphasizes the strong demand for the products of the video camera manufacturer.

The company has had a successful performance over the past three years. Last year it sold 3.8 million cameras, helping the company to increase revenue by 87% to reach 986 million dollars. The profit of GoPro Inc.s rose by 88% to 61 million dollars in 2013.

According to the statement of GoPro Inc. the proceeds gathered from the Initial Public Offering are to be used in order to repay debt. The company is a debtor to firms such as Barclays Plc, JPMOrgan Chase & Co., Citigroup Inc. It also shared that some of the proceeds may be used for purchasing some additional assets or businesses.

The company will be listed on the Nasdaq Stock Market under the symbol GPRO. The companys trading is to start on Thursday.