Smart ring maker Oura aims for billion-dollar IPO in the US

Oura, the maker of smart rings that track health and wellness data, is preparing for a significant U.S. stock market listing, aiming to raise as much as $3 billion (nearly 2.6 billion euros). The Finnish-rooted company's valuation has reportedly surged by over 45% in the last year, climbing from an estimated $11 billion to more than $16 billion (approximately 13.7 billion euros).

According to Bloomberg, citing sources, current owners are expected to sell a substantial portion of their holdings during the initial public offering. Oura, which confirmed its plans to go public in the U.S. earlier this year, anticipates the listing will occur in September. Many companies are reportedly seeking to list before the U.S. midterm elections in November, as the political landscape could impact market conditions.

While Oura's fundraising goal is substantial, it falls short of the largest IPO this year, which was SpaceX's $75 billion. Oura maintains product development in Oulu, Finland, but recently relocated its parent company to the United States. As of last fall, Oura had sold over 5.5 million rings, with a significant portion of its revenue also coming from monthly subscription fees for its app.

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We built Oura on the idea that people have the right to understand their bodies as accurately as possible, not based on guesswork or a coin toss.

The competitive landscape for wearable health devices is intensifying, with smartwatches and other gadgets challenging Oura's market position. Adding to its challenges, Oura is facing a class-action lawsuit filed in San Francisco last week. The lawsuit alleges that the sleep data generated by the rings is unreliable, as the device does not measure eye movement, a key factor in sleep stage analysis.

Oura CEO Tom Hale defended the company's technology on LinkedIn, stating, "We built Oura on the idea that people have the right to understand their bodies as accurately as possible, not based on guesswork or a coin toss." In a statement to American tech media, Oura asserted that "multiple, third-party independent studies support our claims of accuracy, and we have transparently communicated our mechanisms and measurement methods." The outcome of this lawsuit could have broader implications for how the capabilities of wearable health monitors are marketed.

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multiple, third-party independent studies support our claims of accuracy, and we have transparently communicated our mechanisms and measurement methods.