Smart ring maker Oura filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to list its shares on the Nasdaq Global Select Market under the ticker “OURA.” The number of shares to be sold in the initial public offering, the price range and the timeline were not disclosed. The company is reportedly aiming to raise up to 3 billion dollars and reach a valuation of 16 billion dollars.
Oura’s revenue rose 74% to 1.21 billion dollars in the nine-month period ended June 30, while its net profit reached 60.8 million dollars. Membership revenue rose 121% to 240.5 million dollars.
The filing also listed as a risk a class-action lawsuit claim based on allegations that the accuracy of the rings’ sleep-stage measurements was misrepresented. Goldman Sachs is serving as the lead underwriter for the initial public offering.
Why it matters
Following the filing, the framework for investors to assess the company centers on how Oura will sustain its rapidly growing revenue together with recurring revenue from memberships. Since the terms of the initial public offering have not yet been disclosed, it remains unclear what number of shares, price range and timeline will shape the company’s targeted fundraising and valuation. This information will be decisive not only for potential investors but also for the company’s existing shareholders and market participants monitoring the initial public offering process. The class-action lawsuit claim included in the filing shows that allegations concerning the accuracy of the products’ measurements will be taken into account in the assessment of legal risks as well as financial performance. Goldman Sachs’ role as lead underwriter identifies one of the institutional actors involved in conducting the process.
Term: initial public offering
An initial public offering is when a company’s shares begin trading on a stock exchange for the first time; while raising capital, the company also assumes an obligation to provide regular financial reporting to the public.