GoPro share price suffers as it files for $800m share issue

Jessica Morris
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GoPro IPOd earlier this year (Source: Getty)
Shares in GoPro, the brand famed for its shock-proof video cameras favoured by sport fanantics, dropped in pre-market trading in New York after the company filed for the sale of $800m of shares.
The share issuance would be for "general corporate purposes, including working capital" according to an SEC filing. It added that the shares will be made available "as soon as practicable".
These kind of moves typically send stock prices tumbling as their perceived value is "diluted", particularly given investors tend to measure a company's profitability through earnings per share. Increasing the number of shares on the market will reduce this figure.
The company floated earlier this year and has experienced choppy trading since. The stock suffered after its first quarterly report came out, falling around 12 per cent. Nonetheless, it's still risen significantly sinces its IPO in June.
GoPro shares fell as much as six per cent in pre-market trading on Monday.