Oura Inc. is prepping a Wall Street debut that would make it one of the biggest fashion IPOs in years — even if the smart ring pioneer doesn’t fit in a neat fashion box.
The Finnish company, which recently set up a U.S. base, plans to sell 13.5 million shares in an upcoming offering, while early investors will put up another 36.5 million shares.
The offering was priced at a range of $40 to $44 a share late Monday, valuing the company at $12.8 billion at the midpoint.
For a global comparison, that would put Oura just ahead of Prada, which has a market capitalization that translates into about $12.2 billion at current exchange. Lululemon Athletica Inc. and Dick’s Sporting Goods Inc. — two very different fashion companies that play in the health sphere — are valued between $11 billion and $12 billion. (Ultra fast-fashion giant Shein is valued at $20.5 billion after its offering earlier this month, but that was a come-down from its once sky-high targets.)
While each of those companies in their own way play to style and seek to keep up with fashion trends, Oura is clearly playing a different game, even if its marketing is in keeping with the expected style-heavy imagery.
In its stock registration statement, Oura stresses health first. It is on a mission to “give the body a voice — translating physiological signals across sleep, activity, readiness, stress, heart health, metabolic health and women’s health into more than 50 metrics and predictive insights.”
Then comes comfort, convenience and, finally, style.
“Our jewelry-like design enables seamless wear across settings, with some members choosing to own multiple rings for different occasions,” the company said. “Oura Ring is lightweight — weighing as little as two grams depending on size — unobtrusive, and comfortable to wear around the clock, without bright displays or constant notifications that fragment attention or disrupt sleep. This combination of comfort, convenience and style drives sustained adherence.”
Oura’s proposition is more high-tech than high-fashion.
“Together our proprietary hardware, software, data and AI drive a self-reinforcing flywheel that strengthens Oura’s competitive advantage over time,” the registration statement said. “Every day of wear generates richer, longitudinal data and member context, expanding our personalized longitudinal dataset.
“This ever-evolving data asset continuously trains our proprietary models and deepens our understanding of each individual, enabling our models to deliver more precise and personalized insights to members.”
The company counted 5 million paid members in 56 markets worldwide at the end of its third quarter on June 30.
Revenues for the first nine months of its fiscal year shot up 74 percent to $1.2 billion, generating net income of $60.8 million.
“We believe we are in the early innings of addressing a large and expanding market opportunity that begins with wearables and extends into preventative healthcare,” the company said.
Like the Apple Watch, which is fueled by connectivity, Oura is using the trappings of fashion to go after something broader.
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