Oura shelves its $2.2B IPO citing 'uncertainty' in the market

Oura has called off its initial public offering indefinitely, the smart ring maker said, pointing to uncertainty in the market for new listings. The company had been set to raise as much as $2.2 billion through the offering. It did not give further explanation for the decision.

The maker of the Oura Ring 5 had filed to sell 55 million shares priced between $40 and $44 each. At the midpoint of that range, the listing would have valued Oura at as much as $15 billion. The IPO is now postponed with no new timeline attached.

Chief executive Tom Hale said in a statement that the company's goal is to help people live healthier, longer lives, and that going public is only one part of that effort. He said Oura wants to deliver a strong IPO for its employees and investors and can afford to pick the right time. Until then, he said, the company will keep working on the opportunities in front of it.

Oura's business appears to be growing. The company said the Oura Ring 5 has been well received, and it now counts 5.7 million paying members, up from 5 million at the end of June. It expects revenue to rise 90% in its 2026 financial year, after reporting $907.9 million in revenue a year earlier.

The delay pushes back plans tied to the money the IPO would have brought in, both for the company and for its shareholders. Forerunner Ventures, an early backer of Oura, had planned to sell its entire 9.3% stake in the offering, a move that would have brought it roughly $1.20 billion at the $42 midpoint. Oura had intended to use most of the proceeds to cover tax obligations tied to employee share grants that would have vested when the company listed.

Oura's valuation has climbed sharply in recent years. It was valued at about $11 billion last October, when it raised $900 million in a round led by Fidelity, roughly double the $5.2 billion valuation it held less than a year before that. The company has also been building up recurring revenue: memberships carry an 89% gross margin and accounted for about 20% of sales in the latest period, even as hardware continues to drive most of its revenue. Oura held about $372 million in cash at the end of June, which it had planned to leave untouched by using IPO proceeds for the employee tax obligations.

More company and startup news from TechManNews.