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

Oura, the maker of the smart ring, has delayed its planned IPO by up to $2.2 billion, citing "uncertainty in the market." The company had intended to offer 55 million shares at a price between $40 and $44 each. Had the IPO gone through, Oura's valuation would have been as high as $15 billion, based on the mid-point of that price range.

CEO Tom Hale stated that while the IPO is a part of the company's journey, its mission remains to help people live healthier, longer lives. Oura's latest product, the Oura Ring 5, has been well-received by consumers, and the company now has 5.7 million paying members. Revenue is expected to grow by 90% in 2026 compared to the previous year.

The delay in the IPO will hinder some of the company's plans, including those of its shareholders. Forerunner Ventures, an early investor, was set to sell its entire 9.3% stake in the IPO, which would have yielded around $1.20 billion at the $42 midpoint. Most of the IPO funds were intended for paying off tax obligations related to employee stock grants.

With no IPO, shareholders now face a wait before they can gain liquidity. Oura's valuation has surged in recent years, jumping from $5.2 billion to nearly $15 billion after raising $900 million in a round led by Fidelity in October. The company's recurring revenue model, with 89% gross margins from memberships, now makes up about 20% of sales.

As of June, Oura had $372 million in cash on hand, which it had planned to keep untouched, using IPO proceeds to cover employee-related tax obligations.