Oura, the smart ring manufacturer, aims to secure up to $2.2 billion through its forthcoming initial public offering (IPO), with current investors poised to benefit significantly.
Recent updates to the IPO documentation reveal that Oura and its shareholders are presenting 50 million shares priced between $40 and $44 each. It’s noteworthy that a significant portion of the funds generated from the IPO will primarily benefit existing shareholders, who are putting forth 36.5 million shares, representing nearly two-thirds of the total offered.
If shares are listed at $42, the average price within the specified range, shareholders would receive approximately $1.53 billion, while the company itself would gain around $567 million before deducting fees and expenses.
The largest portion of proceeds will go to Forerunner Ventures, Oura’s second-largest stakeholder, which plans to sell its complete 9.3% ownership, equating to about 28.7 million shares for approximately $1.20 billion, assuming a $42 listing price before any fees or taxes. Forerunner’s stake constitutes nearly 80% of the shares offered by current investors.
Forerunner initially backed Oura during its $28 million Series B funding round in 2020, as per market analysis.
Interestingly, Oura does not seem to treat this IPO as a traditional fundraising venture. If priced at the midpoint of $42, the firm anticipates net proceeds of around $532.6 million, planning to allocate approximately $526.4 million to settle accumulated tax liabilities related to stock options for employees that will mature upon the IPO. This would leave Oura with roughly $6.2 million for general operational needs, according to the documentation.
In essence, Oura’s strategy appears to offer its early investors an exit route while simultaneously addressing tax requirements without incurring debt or utilizing cash reserves, which were about $372 million at the end of June.
This IPO is occurring amidst Oura’s rapid growth, with subscription services emerging as a more significant revenue stream. The company’s membership model boasts an impressive 89% gross margin, with membership income more than doubling to $240.5 million, making up roughly 20% of Oura’s overall sales. Meanwhile, hardware sales remained the dominant contributor, generating $974 million.
Oura anticipates concluding the fiscal year ending September 30 with approximately 5.7 million paying subscribers, nearly double the count from the previous year.
If the IPO pricing reaches the upper limit of the proposed range, Oura could achieve a market valuation of $14.1 billion.
Back in October 2025, the company was valued at around $11 billion following a $900 million funding round spearheaded by Fidelity, with additional backing from ICONIQ, Whale Rock, and Atreides. Just a year prior, it had raised $200 million at a valuation of $5.2 billion. To date, Oura has amassed about $2.06 billion in funding, according to market analysis.
