Smart ring maker Oura puts off initial public offering due to market ‘uncertainty’

Oura Inc., a maker of smart rings, has postponed its planned initial public offering (IPO) due to market uncertainty, according to a press release. Despite strong demand, the IPO market seemed to slow down in the third quarter, as noted by research firm Renaissance Capital. Factors contributing to the market uncertainty include concerns over potential spending slowdown on artificial intelligence, the Federal Reserve's decision to resume interest rate hikes, and an increase in bond yields, which makes borrowing more expensive.

Oura's smart rings are primarily used for monitoring health metrics, such as sleep patterns and fitness activity. The company's primary revenue source comes from ring sales, with the remainder generated through subscriptions. Oura had recently made significant progress with the introduction of the Oura Ring 5, which increased the number of paid members to 5.7 million.

The company anticipates a 90% growth in revenue for the fiscal year ending. Previously, Oura planned to sell 50 million shares in the IPO, priced between $40 and $44, with almost three-quarters of the shares being purchased by existing shareholders. Had the IPO proceeded as planned, it would have valued the company at $13.5 billion.