Smart ring manufacturer Oura plans to raise up to $2.2 billion through an IPO, but the majority of the funds from this listing will go to existing shareholders. According to the company's updated IPO filing, Oura and its shareholders plan to issue a total of 50 million shares, with a price range of $40 to $44 per share. Of these, shareholders plan to sell 36.5 million shares, accounting for nearly two-thirds of the total issuance. If priced at the midpoint of $42 per share, shareholders are expected to receive approximately $1.53 billion, while the company would receive about $567 million.
Among them, Oura's second-largest shareholder, Forerunner Ventures, plans to sell all of its 9.3% stake, about 28.7 million shares. At $42 per share, the transaction value is estimated to be around $1.2 billion, accounting for nearly 80% of the shares sold by existing shareholders. Forerunner participated in Oura's $28 million B-round financing in 2020.
Oura expects net proceeds from the IPO to be about $532.6 million, of which approximately $526.4 million will be used to repay taxes related to employee stock vesting, with the remaining about $6.2 million allocated for general corporate purposes. As of June, the company had cash reserves of approximately $372 million. In terms of business, Oura's membership revenue has grown to $240.5 million, with a gross margin of 89%, and hardware revenue reached $974 million. The company expects paid members to reach about 5.7 million by the end of September, doubling year-over-year. If priced at the upper end of the offering range, Oura's market value could reach $14.1 billion.
