Smart ring maker Oura Inc. and its backers are seeking to raise as much as $2.2 billion in an initial public offering, selling 50 million shares for $40 to $44 each. This values Oura at approximately $14.1 billion, a reduction from the $3 billion raise and over $16 billion valuation it reportedly targeted a month prior. The IPO proceeds are disproportionately allocated, with only $594 million going to Oura itself, while existing shareholders stand to collect about $1.61 billion, representing 73% of the base deal. If an over-allotment option is exercised, selling stockholders could receive close to $1.94 billion of a $2.53 billion total deal, or 77% of the total, as Oura will not receive any proceeds from these secondary sales.
Several early investors are cashing out significantly. Forerunner Ventures, Oura's second-largest shareholder, plans to offload its entire 9.3% stake of nearly 28.7 million shares, which could net around $1.2 billion at the midpoint price. Lifeline Ventures, an early backer, is selling about one-third of its stake, totaling nearly 7 million shares, worth about $292 million. Elysian Park Ventures, the private investing arm of the Los Angeles Dodgers, is selling 61.5% of its stake, valued at $36.6 million. In contrast, major investors like Fidelity Investments (the largest shareholder with 10.9%), Temasek, Iconiq Capital, and Atreides are not selling significant portions of their stakes.
Oura's financial performance shows strong growth, with revenue up 74% year-over-year to $1.21 billion in the first nine months of 2026, and membership revenue growing 121% to $240.5 million. The company reported a net income of $60.8 million over this period. However, its S-1 filing showed a $924.3 million loss, primarily due to $1.17 billion in stock repurchases, including a $985 million deemed dividend to preferred holders. Analysts note that this high valuation, at approximately 9.5x trailing sales and over 200x trailing earnings, requires sustained strong growth and improved profitability to justify.
The company, founded in Finland in 2013 and now headquartered in San Francisco, has seen its paid members double to 5 million, with an expected 5.7 million by the end of FY2026. Roughly 94% of ring buyers convert to a paid plan, and about 85% remain subscribers after a year. Goldman Sachs is among the underwriters for the IPO. The current valuation of $14.1 billion represents a 29% increase from its $10.9 billion Series E valuation in September 2025.
