Oura targets $15.62 billion valuation in US IPO, setting stage for fall listings

Oura is targeting a fully diluted valuation of $15.62 billion in its US initial public offering as ‌the smart ring maker kicked off its roadshow on Monday, ‌testing investor appetite for consumer technology companies after a slow start to the fall IPO ​season.

The deal comes as uncertainty around the AI trade, rising bond yields and Federal Reserve rate hikes has kept markets jittery in recent weeks.

Oura and some of its existing investors plan to raise as much as $2.2 billion through ‌the sale of 50 million ⁠shares at the top of the indicated price range of $40 to $44.

"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."

Weight-loss drugmaker Eli Lilly has indicated interest in purchasing up to $100 million of the shares, while investment firm Dragoneer has indicated interest in buying up to $300 million worth of shares.

Oura has helped popularize smart rings that track metrics ‌such as heart health, activity and sleep, ​as consumers seek more personalized fitness insights ​amid a broader focus on ​weight management and wellness.

The health-tech company said its revenue ‌surged roughly 74% year-over-year to $1.21 billion in ​the nine months ​ended June 30.

Oura reached a valuation of about $11 billion in a late-stage funding round last year.

Goldman Sachs, Morgan Stanley, and J.P. Morgan ​are the lead underwriters ‌of the IPO.

After the IPO, Oura will list on the Nasdaq ​under the ticker symbol "OURA."

(Reporting by Manya Saini in Bengaluru; Editing ​by Shinjini Ganguli and Leroy Leo)