Smart ring maker Oura Inc said it was postponing its planned IPO due to market “uncertainty”.
In a press release Tuesday, Oura said it was delaying the IPO “despite strong demand.”
The IPO market had a strong start to the year, but slowed in the third quarter, according to research firm Renaissance Capital. Concerns about a possible slowdown in artificial intelligence spending, the Federal Reserve’s resumption of rate hikes and a rise in bond yields — making borrowing more expensive — all played a role, Renaissance said.
Oura customers use the ring to monitor their health, including their sleep patterns and physical activity. The company makes most of its revenue from ring sales, with the rest coming from subscriptions.
The company approached the IPO with enthusiasm: the introduction of the Oura Ring 5 helped increase the number of paying members to 5.7 million and the company expects revenue for the fiscal year ending Wednesday to have increased by 90%.
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Oura had planned to sell 50 million shares in the IPO at $40 to $44, with nearly three-quarters sold by current shareholders. Halfway through the price range, Oura’s IPO would have given it a market value of $13.5 billion.
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