Oura’s $2.2B IPO is mostly a payday for existing shareholders

Oura, the maker of smart rings, is set to raise up to $2.2 billion through its upcoming IPO, but existing shareholders are expected to reap the majority of the financial benefits. The company's IPO filing reveals that it plans to offer 50 million shares, ranging from $40 to $44 each, with the majority of proceeds earmarked for shareholders, who own almost two-thirds of the total.

If the shares list at the midpoint of $42, shareholders would see proceeds of around $1.53 billion, while the company would receive approximately $567 million, before fees and expenses. Forerunner Ventures, the company's second-largest shareholder, stands to benefit the most, with its entire 9.3% stake of about 28.7 million shares likely to be sold for roughly $1.2 billion, assuming the shares list at $42.

Forerunner Ventures initially invested in Oura during its 2020 $28 million Series B round. The IPO is not intended as a fundraising event for Oura, which anticipates net proceeds of $532.6 million at the midpoint pricing. The company plans to use roughly $526.4 million to settle accumulated tax obligations related to employee share grants that vest at the time of the IPO, leaving about $6.2 million for general corporate use.

This move allows Oura to exit for its early backers while simultaneously fulfilling tax obligations without taking on debt or tapping its cash reserves, which stood at around $372 million at the end of June. As Oura expands rapidly, subscription revenue has become a significant and profitable source of income, with a 89% gross margin.

Membership revenue more than doubled to $240.5 million in the reported period, accounting for about 20% of the company's sales. Hardware sales still dominate, with $974 million in revenue. Oura now projects ending the fiscal year on September 30 with about 5.7 million paying members, nearly double the number from the previous year.

Should the company list at the top of the proposed price range, its market cap could reach $14.1 billion. The company was valued at approximately $11 billion in October 2025 following a $900 million funding round led by Fidelity, with participation from ICONIQ, Whale Rock, and Atreides. This most recent funding brought Oura's total capital raised to about $2.06 billion.