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

Oura, a smart ring maker, has announced a delay in its planned initial public offering due to market uncertainty. The company released a press statement on Tuesday, stating that it is postponing the IPO "despite strong demand". The IPO market had a strong start to the year but saw a decline in the third quarter, according to research from Renaissance Capital.

Factors contributing to this uncertainty include concerns about potential slowdowns in spending on artificial intelligence, the Federal Reserve's decision to resume rate hikes, and a rise in bond yields, which make borrowing more expensive. Oura's products are primarily used to monitor users' health, including sleep patterns and fitness activity.

The majority of the company's revenue comes from ring sales, with the rest coming from subscriptions. Oura had been making progress in preparing for the IPO, with the launch of the Oura Ring 5 boosting the number of paid members to 5.7 million and expecting a 90% growth in revenue for the fiscal year ending on Wednesday. The company intended to sell 50 million shares in the IPO, priced between $40 and $44, with nearly three-quarters of them being purchased by existing shareholders.

If the IPO had proceeded at its midpoint, Oura's market value would have been estimated at $13.5 billion.