Finance21 September, 20262 min read
Oura Targets $2.2 Billion U.S. IPO, Plans Nasdaq Listing Under Ticker OURA
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50 million shares offered at $40-$44, raising up to $2.2 billion. Company sells 13.5 million, existing holders 36.5 million shares.
Oura targets $2.2B IPO
Oura is targeting a U.S. IPO with an indicated price range of $40 to $44 and an offering of 50 million shares, including 13.5 million from the company and 36.5 million from existing holders.
Oura’s filing implies a market cap of $14.1 billion at the high end of the range, and the company expects to price the IPO on Sept. 29.
Oura plans to list on the Nasdaq Global Select Market under the ticker OURA, with Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., Allen & Co., and Jefferies Financial Group Inc. acting as lead underwriters.
Oura generated $1.21 billion in revenue during the nine months through June 30 and recorded a $924.3 million net loss for stockholders in that period.
Oura also reported that it sold about 3.6 million rings in the past year and that its Oura Membership service counted more than five million paying members as of June 30.
Coinbase opens retail access
Coinbase opened initial public offering access to eligible U.S. retail customers through its mobile application, starting with Oura’s $2.2 billion offering.
Coinbase said eligible customers can request Oura shares at the IPO price before public trading begins, and the service begins with the smart-ring maker’s planned Nasdaq debut.
Coinbase said selling allocated shares within 30 days may trigger a 60-day IPO access restriction, and the company said its allocation algorithm prioritizes investors who believe in what they’re purchasing for the long haul.
Coinbase said COIN shares gained more than 5% on Sep. 21, and the announcement described COIN rising 5.7% to $205.38 after the IPO-access update.
Coinbase also said allocated shares are booked at the final IPO price and become tradable when public trading begins.
Secondary-heavy deal, big stakes
Oura’s IPO structure is secondary-heavy, with Oura and its shareholders together offering 50 million shares at a price range of $40 to $44 each. TechCrunch said shareholders are offering 36.5 million shares, or almost two-thirds of the total, while Oura is offering the remaining 13.5 million shares. TechCrunch reported that Forerunner Ventures plans to sell its entire 9.3% stake of about 28.7 million shares for about $1.20 billion if the shares list at $42, before underwriting fees and taxes.
TechCrunch said Oura expects net proceeds of $532.6 million at the $42 midpoint and plans to use about $526.4 million to pay off accumulated tax obligations related to employee share grants that will vest at the time of the IPO. TechCrunch said Oura could end up with a market cap of $14.1 billion if it lists at the top of the proposed price range, tying the valuation outcome to the $40 to $44 range.