Smart ring maker Oura announced its initial public offering (IPO) of 50,000,000 shares of its common stock.
The offering includes 13,500,000 shares offered by Oura and 36,500,000 shares offered by certain of Oura’s existing stockholders.
According to Oura’s regulatory filing, the initial public offering price is expected to be between $40.00 and $44.00 per share.
Oura will not receive any proceeds from the sale of its common stock by the selling stockholders. The bulk of those proceeds will go to Forerunner Ventures, the company’s second-largest shareholder. The venture firm plans to sell its entire 9.3% stake of about 28.7 million shares for about $1.20 billion (assuming the shares list at $42) before underwriting fees and taxes. Forerunner’s shares account for nearly 80% of the shares being sold by existing shareholders in the deal.
The OPO comes as Oura is growing quickly, with subscriptions becoming a larger source of revenue. The membership business is seemingly a very profitable endeavor for Oura, with an 89% gross margin. Membership revenue more than doubled to $240.5 million in the period, accounting for about 20% of the company’s sales. Hardware still made up most of the company’s revenue, at $974 million.
Oura expects to finish the fiscal year ending September 30 with about 5.7 million paying members, which would nearly double the number from a year earlier.
At a price of $40.00 per share, Oura’s offering of 50 million shares would generate $2.00 billion in gross proceeds. If the shares are priced at $44.00 each, the offering would generate $2.20 billion in gross proceeds.
Oura could end up with a market cap of $14.1 billion if it lists at the top of the proposed price range, according to TechCrunch reports.
Founded in Finland in 2013, Oura is headquartered in San Francisco, with E.U. headquarters in Oulu, Finland.