Oura Takes Smart Rings to Wall Street, Targeting $15.6 Billion Valuation

Smart-ring maker Oura is seeking to raise as much as $2.2 billion in its U.S. initial public offering, setting the stage for one of the most closely watched consumer-technology listings as investors navigate increasingly unsettled financial markets. The company is targeting a fully diluted valuation of about $15.62 billion and is offering 50 million shares at an indicative price of between $40 and $44 apiece. Oura began its investor roadshow on Monday, marking an important step toward its planned Nasdaq debut under the ticker “OURA.” The offering arrives at a delicate moment for the U.S. IPO market. Investor sentiment has been affected by uncertainty surrounding the artificial-intelligence trade, rising bond yields and expectations around Federal Reserve interest-rate policy. Those factors have contributed to greater volatility in financial markets and made investors more selective about new stock offerings. “Oura is the first real test of US 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.” The company and some of its existing shareholders intend to sell shares as part of the offering. At the top end of the proposed price range, the transaction could raise approximately $2.2 billion, giving Oura a significantly higher valuation than the roughly $11 billion it achieved in a late-stage funding round last year. Interest from major investors could also provide an early indication of demand for the deal. Weight-loss drugmaker Eli Lilly has indicated an interest in purchasing as much as $100 million of Oura shares, while investment firm Dragoneer has indicated plans to buy up to $300 million worth. Oura has emerged as one of the most recognizable names in the growing wearable-health market, helping popularize smart rings designed to monitor a range of personal health and wellness indicators. Its devices track metrics including sleep, activity and heart-health-related measurements, positioning the company at the intersection of consumer technology, fitness and digital health. The company's growth has accelerated as consumers increasingly seek personalized information about their health and fitness. The broader wellness market has also benefited from heightened interest in weight management, exercise and preventative health, areas that have attracted substantial investment from both technology and pharmaceutical companies. Oura's financial performance has strengthened alongside that expansion. The company reported that revenue climbed roughly 74% year over year to $1.21 billion in the nine months ended June 30. That growth rate will be closely watched by prospective investors as they assess whether Oura can maintain its momentum after becoming a publicly traded company. Its IPO valuation also represents a substantial increase from the $11 billion valuation established during its previous funding round. Goldman Sachs, Morgan Stanley and J.P. Morgan are serving as the lead underwriters for the offering. The IPO will provide a public-market test for Oura's business model as well as for investor appetite for consumer technology companies more broadly. A successful debut could potentially create a more favorable environment for other companies considering listings, while weaker demand could underscore the caution that has characterized the market in recent weeks. Once the offering is completed, Oura's shares are expected to trade on the Nasdaq under the symbol “OURA.”