GoPro recently went public on the Nasdaq:GPRO. Regardless of whether you think it is worth the current valuation or not, what do you think about the stock sold and by whom?
Typically we think of a company going public as a way to raise money for the company itself. For example, let us assume a company sells 1,000,000 shares for $10 at their public offering. The company ends up with $10,000,000 to help the company grow. After all that is what investors who are buying the stock assume the proceeds are going to be used for.
According to Reuters here is how the stock was offered.
17.8 million shares were offered to the public which broke down into:
- 8.9 million shares sold by the company
- 8.9 million shares sold by stockholders
The pricing was $24 a share which breaks the proceeds down into:
- $213.6 Million for the company to use
- $213.6 Million for stockholders
According to Celebrity Networth here is how the family of founder Nick Woodman made out:
- Nick Woodman (and wife): Cashed out 3,600,000 shares for $86 million. They still own a substantial portion of the company, around 48% (dailymail.co.uk).
- Pilar Woodman (sister): Cashed out 88,000 shares for $2.1 million. She still owns 562,433 shares.
- Andrea Moody (sister): Cashed out 108,000 shares for $2.6 million. She still owns 972,000 shares.
- Concepcion Federman (mother): Sold 15,000 shares for $360,000. She still owns 285,000 shares.
- Dean Woodman (father): Initially sold part of his stock to a VC fund for about $7 million. He still owns 7.25 million shares.
When you look at the contributions, this group of individuals founded the company, seed funded it, work at it and made it what it is today. They deserve every penny and worked hard for it.
However, there was a total of $8.9 million shares sold at the IPO for half the raised capital which did not go to the company, that seems like a lot and thankfully all that information is public as it is important for current shareholders and potential new ones to understand.