GoPro, the company behind high-definition action cameras, said it plans to raise an additional $800 million in a stock offering, and may use the cash for acquisitions and investments in other companies.
News of the planned stock offering sent GoPro's shares down as much as 5% before they partly recovered. With about two hours left in Monday's trading session, the stock was trading at $75.96, down $3.10, or 3.9%.
Even with the drop, the San Mateo, Calif., company's share price is still triple that of its initial public offering price of $24 in June, when the firm raised $491 million. The company's current total stock-market value is almost $10 billion.
The $100 million in new capital for the company “could be used for anything,” according to Wedbush Securities analyst Michael Pachter, who cited such possibilities as international distribution, incremental manufacturing capability and acquisitions.
Before its IPO, GoPro acquired the digital design and software studio General Things Inc. in 2013. In 2011, the company acquired CineForm, a maker of video compression technology used in films such as "Slumdog Millionaire."