Smart ring maker Oura Inc has announced the postponement of its planned initial public offering (IPO), citing market “uncertainty”. The company confirmed its decision in a press release on Tuesday, stating the delay was made “despite strong demand”.
According to research firm Renaissance Capital, the IPO market experienced a solid start to the year but then tailed off during the third quarter. Factors contributing to this trend reportedly included concerns over a potential slowdown in artificial intelligence spending, the Federal Reserve's resumption of rate hikes, and an increase in bond yields, which makes borrowing more expensive.
Oura had planned to offer 50 million shares in the IPO, priced between $40 and $44. At the midpoint of this range, the IPO would have given Oura a market value of $13.5 billion. The company, which generates most of its revenue from ring sales and the remainder from subscriptions, had seen its number of paid members increase to 5.7 million with the introduction of the Oura Ring 5. Revenue for the fiscal year ending Wednesday was expected to have grown by 90%.