Smart ring maker Oura targets $15.62-billion valuation in U.S. IPO

Oura is targeting a fully diluted valuation of US$15.62-billion in its US initial public offering as the smart ring maker kicked off its road show on Monday, testing investor appetite for consumer technology companies after a slow start to the fall IPO season.

The deal comes as uncertainty around the AI trade, rising bond yields and Federal Reserve rate hikes has kept markets jittery in recent weeks.

Oura and some of its existing investors plan to raise as much as US$2.2-billion through the sale of 50 million shares at the top of the indicated price range of US$40 to US$44.

“Oura is the first real test of U.S. appetite after a sluggish September so far and a period of more volatile markets. If it comes strongly out the gate it will encourage other issuers,” said Samuel Kerr, global head of equity capital markets at Mergermarket.

“However, a weaker IPO might set alarm bells ringing that market sentiment may be turning.”

Weight-loss drugmaker Eli Lilly LLY-N has indicated interest in purchasing up to US$100-million of the shares, while investment firm Dragoneer has indicated interest in buying up to US$300-million worth of shares.

Oura has helped popularize smart rings that track metrics such as heart health, activity and sleep, as consumers seek more personalized fitness insights amid a broader focus on weight management and wellness.

The health-tech company said its revenue surged roughly 74 per cent year-over-year to US$1.21-billion in the nine months ended June 30.

Oura reached a valuation of about US$11-billion in a late-stage funding round last year.

Goldman Sachs, Morgan Stanley and J.P. Morgan are the lead underwriters of the IPO.

After the IPO, Oura will list on the Nasdaq under the ticker symbol “OURA.”