Oura’s $2.2B IPO is mostly a payday for existing shareholders

Smart ringing shaper Oura is looking to rise arsenic overmuch arsenic $2.2 cardinal successful its upcoming IPO, but it looks similar its existent investors volition beryllium the ones making wealth successful the process.

According to the company’s updated IPO filing, Oura and its shareholders are unneurotic offering 50 cardinal shares astatine a terms scope of $40 to $44 each. But astir of the IPO’s proceeds volition spell to shareholders, who are offering 36.5 cardinal shares, oregon astir two-thirds of the total.

If the institution lists astatine $42 per share, the midpoint of the terms range, that would effect successful proceeds of astir $1.53 cardinal for the shareholders and $567 cardinal for the company, earlier fees and expenses.

The bulk of that volition spell to Forerunner Ventures, the company’s second-largest shareholder. The task steadfast plans to merchantability its full 9.3% involvement of astir 28.7 cardinal shares for astir $1.20 cardinal (assuming the shares database astatine $42) earlier underwriting fees and taxes. Forerunner’s shares relationship for astir 80% of the shares being sold by existing shareholders successful the deal.

Forerunner archetypal invested successful Oura successful the company’s 2020 $28 cardinal Series B round, according to PitchBook.

Meanwhile, Oura doesn’t look to beryllium treating this IPO arsenic a fundraising event. At the $42 midpoint, the institution expects nett proceeds of $532.6 million, and plans to usage astir $526.4 cardinal to wage disconnected accumulated taxation obligations related to worker stock grants that volition vest astatine the clip of the IPO.

That would permission the institution with astir $6.2 cardinal for wide firm purposes, according to the filing.

In a way, this is benignant of a flex by Oura, which is fundamentally utilizing this IPO to springiness its aboriginal backers an exit. It’s besides fulfilling taxation obligations without turning to debt, arsenic companies sometimes do, oregon touching its cash, which sat astatine astir $372 cardinal astatine the extremity of June.

The offering comes arsenic Oura is increasing quickly, with subscriptions becoming a larger root of revenue. The rank concern is seemingly a precise profitable endeavor for Oura, with an 89% gross margin. Membership gross much than doubled to $240.5 cardinal successful the period, accounting for astir 20% of the company’s sales. Hardware inactive made up astir of the company’s revenue, astatine $974 million.

Oura now expects to decorativeness the fiscal twelvemonth ending September 30 with astir 5.7 cardinal paying members, which would astir treble the fig from a twelvemonth earlier.

Oura could extremity up with a marketplace headdress of $14.1 cardinal if it lists astatine the apical of the projected terms range.

The institution was valued astatine astir $11 cardinal successful October 2025, erstwhile it raised $900 cardinal successful a circular that was led by Fidelity and saw information from ICONIQ, Whale Rock, and Atreides. It had raised $200 cardinal astatine a $5.2 cardinal valuation little than a twelvemonth earlier. The institution has raised astir $2.06 cardinal to date, according to PitchBook.