Oura Puts the Brakes on Its IPO

Smart ring maker Oura Inc. says it is postponing a planned initial public offering due to market "uncertainty," reports the AP, adding in a Tuesday press release that the move came "despite strong demand." The decision marks what Reuters calls "the latest high-profile IPO hopeful to shelve its plans as volatile markets dampen investor appetite ‌for new listings." The IPO market had a solid start to the year but tailed off in the third quarter, according to research firm Renaissance Capital. Concerns about a possible slowdown in spending on artificial intelligence, the Federal Reserve's resumption of rate hikes, and a surge in bond yields—making borrowing more expensive—all played a factor, Renaissance said.

Oura customers use the ring to monitor their health, including sleep patterns and fitness activity. The company gets the bulk of its revenue from ring sales, with the rest coming from subscriptions. Oura approached the IPO, which was set for Wednesday, with momentum: The introduction of the Oura Ring 5 helped boost the number of paid members to 5.7 million, and the company expects revenue for the fiscal year ending Wednesday to have grown by 90%. Oura planned to sell 50 million shares in the IPO between $40 and $44, with nearly three-quarters of them being sold by current shareholders. At the midpoint of the price range, Oura's IPO would have given it a market value of $13.5 billion.