Smart Ring Maker Oura's IPO Gets 4x Oversubscription, Aims to Raise $2.2 Billion

Smart ring manufacturer Oura is bucking the trend in a volatile market, with its initial public offering (IPO) reportedly receiving approximately four times oversubscription, offering a bright spot in the recent U.S. IPO landscape.

According to Bloomberg, citing sources familiar with the matter, the underwriting banks managing the offering are expected to close investor orders by Monday afternoon. Oura and certain shareholders are collectively offering 50 million shares, with a price range of $40 to $44 per share, aiming to raise up to $2.2 billion. At the top end of the pricing range, the company would have a market capitalization of $14.1 billion, or approximately $15 billion on a fully diluted basis when including stock options and restricted stock units.

Pricing and Listing Details

• Pricing date: September 29
• Exchange: Nasdaq Global Select Market
• Ticker symbol: OURA

The strong subscription momentum for Oura is particularly notable, coming just days after nuclear services company Holtec Nuclear Corp. and CVC Capital Partners-backed Bamboo Insurance Services Inc. both postponed their IPO plans, citing market conditions, casting a shadow over the U.S. new-issue market.

Share Structure and Underwriters

According to filings with the U.S. Securities and Exchange Commission, of the 50 million shares offered:

• Oura itself is selling 13.5 million shares
• Existing shareholders, including Forerunner Ventures and Lifeline Ventures, are selling the remaining 36.5 million shares

Joint lead underwriters for the offering include Goldman Sachs, Morgan Stanley, JPMorgan Chase, Allen & Co., and Jefferies Financial Group.

Both Oura and Goldman Sachs declined to comment on the matter. Sources noted that discussions remain ongoing and details of the listing are subject to change.

Potential to End the Drought of Billion-Dollar IPOs

According to Bloomberg-compiled data, the U.S. stock market has not seen an IPO raising more than $1 billion since Jersey Mike's Subs Inc. went public in July. If Oura successfully completes its offering, it would become the first large-scale IPO to cross that threshold in nearly three months, serving as a significant bellwether for a U.S. new-issue market that has experienced a quiet September.

The successive withdrawals by Holtec Nuclear Corp. and Bamboo Insurance Services Inc. had made market participants cautious about the IPO window. Oura's strong oversubscription in this environment has, to some extent, helped restore market confidence.

Risk Disclaimer: Market conditions involve risks, and investment should be made with caution. This article does not constitute personal investment advice and does not take into account individual investors' specific investment objectives, financial situations, or needs. Readers should consider whether any opinions, views, or conclusions expressed herein are suitable for their particular circumstances. Investment decisions are made at the investor's own risk.