Smart ring maker Oura Inc. has launched its U.S. initial public offering, seeking to raise up to $2.2 billion at a valuation of up to $15.62 billion. However, the offering primarily serves as a payday for existing investors, who are selling 36.5 million of the 50 million shares. Early backer Forerunner Ventures plans to fully exit its 9.3% stake for up to $1.2 billion. Furthermore, Oura will use nearly all of its $532.6 million net proceeds to pay off $526.4 million in employee-related tax liabilities.
Oura IPO share offering
- ▪Oura Inc. plans to list its common stock on the Nasdaq Global Select Market under the ticker symbol "OURA".
- ▪Eli Lilly has indicated interest in purchasing up to $100 million of shares in the Oura Inc. initial public offering, while Dragoneer has indicated interest in buying up to $300 million.
- ▪Oura Inc. launched its initial public offering roadshow on September 21, 2026, targeting a fully-diluted valuation of up to $15.62 billion.
- ▪Oura Inc. and its existing shareholders plan to raise up to $2.2 billion by offering 50 million shares priced between $40 and $44 each.
Existing shareholder proceeds distribution
- ▪Existing shareholders of Oura Inc. will receive all proceeds from a 30-day over-allotment option of an additional 7.5 million shares.
- ▪If the initial public offering prices at the midpoint of $42 per share, existing shareholders of Oura Inc. will receive approximately $1.53 billion, while Oura Inc. will receive approximately $567 million before fees.
- ▪Of the 50 million shares offered in the initial public offering, Oura Inc. is selling 13.5 million shares, while existing shareholders are offering 36.5 million shares.
Forerunner Ventures complete exit
- ▪Venture capital firm Forerunner Ventures, Oura Inc.'s second-largest shareholder, plans to sell its entire 9.3% stake of approximately 28.7 million shares in the initial public offering.
- ▪Forerunner Ventures first invested in Oura Inc. in 2020, participating in a $28 million Series B funding round.
- ▪At the midpoint price of $42 per share, Forerunner Ventures could generate approximately $1.2 billion before underwriting fees and taxes from the Oura Inc. initial public offering.
Company tax obligation payments
- ▪Oura Inc. held approximately $372 million in cash reserves at the end of June 2026.
- ▪Oura Inc. plans to use approximately $526.4 million of its expected $532.6 million net initial public offering proceeds, calculated at the $42 midpoint, to pay down accumulated tax liabilities.
- ▪After paying its tax liabilities, Oura Inc. expects to have approximately $6.2 million remaining from the initial public offering proceeds for general corporate purposes.
Smart ring health tracking
- ▪Oura Inc. expects to reach approximately 5.7 million paid members by the end of fiscal 2026, representing 96% year-over-year growth.
- ▪Oura Inc. reported a net loss of $924.3 million on revenue of $1.21 billion for the nine months ended June 30, 2026.
- ▪A proposed class action lawsuit in the Northern District of California challenges Oura Inc.'s marketing claim of 95% sleep tracking accuracy.
FDA wearables regulation status
- ▪Oura Inc. is developing a nighttime blood pressure tracking tool under U.S. Food and Drug Administration wellness guidelines and studying a hypertension risk feature that would require regulatory clearance.
- ▪None of Oura Inc.'s current smart ring features have been cleared by the U.S. Food and Drug Administration as medical devices, operating instead under wellness exemptions.
Debatable claims
- ▪The FDA should regulate health-tracking smart rings as medical devices
- ▪European tech startups should list on local exchanges instead of US markets
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