Smart-ring maker Oura delays $2 billion IPO
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Smart ring maker Oura on Tuesday delayed an IPO that had been expected to raise up to $2.2 billion, citing "market conditions."
Why it matters: The IPO window is narrowing. This is the third official postponement this month, while others have informally delayed.
Behind the scenes: Oura was basically unable to get the price it wanted, in part due to market turmoil tied to the bond yield and oil price volatility, per a source familiar with the situation.
- Most shares were being sold by insiders, rather than by the company itself, which put a premium on pricing.
- The offering was around 5x oversubscribed, the source says, but that doesn't mean that prospective investors were willing to buy at the top of Oura's $40-$44 per share range.
What they're saying: "We aim to deliver an extraordinary IPO for our employees and investors and we have the luxury of choosing our moment," said Oura CEO Tom Hale in a statement. "In the meantime, we will execute against the opportunities ahead."
By the numbers: Oura aimed to sell 50 million shares and list on the Nasdaq.
- At the price midpoint, it would have raised $2.1 billion at a $13.48 billion market cap.
- It has raised over $1.5 billion in VC funding from firms like Fidelity (10.9% pre-IPO stake), Forerunner Ventures (9.3%), Bedford Ridge Capital (9.2%), and Lifeline Ventures (7.3%). This past February it completed a $534 million tender offer.
The bottom line: Oura's IPO had been viewed as a proxy for if Wall Street would treat a wearables company like a health-tech company, rather than as a consumer electronics company. That determination will have to wait.
