Smart Ring Maker Oura Files for US IPO as Revenue Surges

A listing could raise as much as $3 billion for Oura and some of its backers, and value it at more than $16 billion

(Bloomberg) — Health and fitness ring-maker Oura Inc. filed for an initial public offering, showing soaring revenue as well as increasing losses.

The maker of smart rings that track health, fitness and sleep had a net loss attributable to stockholders of $924.3 million on revenue of $1.21 billion for the nine months ended June 30, compared with a net loss of $182.8 million on revenue of $697.6 million in the corresponding period a year earlier, according to its filing Thursday with the US Securities and Exchange Commission. The losses include the effect of a deemed dividend to certain holders of redeemable convertible preferred stock, the filing shows.

Read More: Oura, Aggreko IPO Plans Are Latest Sign of Europe Losing Out 

Oura, which has offices in Oulu, Finland, Helsinki, San Francisco, San Diego and Los Angeles, was founded in 2013. Its rings have gained in popularity in recent years as consumers look to track their sleep and health metrics with something less cumbersome than a smartwatch that typically needs charging almost daily.

The company filed confidentially in May for an IPO. A listing could raise as much as $3 billion for Oura and some of its backers, and value it at more than $16 billion, Bloomberg News reported.

Oura announced Wednesday it had expanded its board of directors, tapping veterans from Netflix Inc. and Robinhood Markets Inc.

IPO investors this year have made outsize bets on new technology, with the listing for billionaire Elon Musk’s rocket, satellite and artificial intelligence company SpaceX setting the record for the largest ever. South Korean memory chipmaker SK Hynix Inc. raised $26.5 billion in July with its American depositary shares listing, notching the biggest ever US debut by a foreign company.

Oura has sold more than 3.6 million smart rings in the last year, the filing shows. They are designed as promise bands and come in classic colors like gold, silver, deep rose among other options. 

The company also offers Oura Membership, a service which lets users track more than 50 health metrics and get personalized insights into their sleep, activity and stress.

Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., Allen & Co. and Jefferies Financial Group Inc. are leading the offering, the filing shows. The company’s shares are expected to trade on the Nasdaq Global Select Market under the symbol OURA.