Oura IPO Targets $2.2 Billion as Forerunner Plans $1.2 Billion Exit
Oura targets up to $2.2 billion in its IPO, with shareholders selling 36.5 million shares while nearly all company proceeds cover employee grant taxes.
Summary
Oura and its shareholders are offering 50 million shares at $40 to $44, targeting up to $2.2 billion. Existing holders are selling 36.5 million shares. At the $42 midpoint, they would receive about $1.53 billion, while Oura would raise $567 million before costs. Forerunner Ventures, Oura’s second-largest shareholder, plans to sell its entire 9.3% stake, about 28.7 million shares, for roughly $1.20 billion before fees and taxes. That represents nearly 80% of shareholder sales. Forerunner first invested in Oura’s $28 million Series B in 2020.
Oura expects $532.6 million in net proceeds, with $526.4 million paying accumulated taxes on employee share grants vesting at the IPO, leaving about $6.2 million for general purposes. This avoids debt and preserves the roughly $372 million held in cash at June’s end. Membership revenue more than doubled to $240.5 million in the reported period, reached an 89% gross margin and supplied about 20% of sales, while hardware generated $974 million. Oura forecasts about 5.7 million paying members by the fiscal year ending September 30, nearly twice the prior year. A $44 listing would value Oura at $14.1 billion. Its October 2025 $900 million round, led by Fidelity with ICONIQ, Whale Rock and Atreides, valued it at approximately $11 billion, following a $200 million raise at $5.2 billion less than a year earlier. Oura has raised about $2.06 billion overall.
Positives
- $240.5 million in membership revenue more than doubled during the reported period and carried an 89% gross margin.
- 5.7 million paying members are expected by the fiscal year ending September 30, nearly twice the previous year’s total.
- $372 million in June cash can remain untouched because IPO proceeds will cover employee grant taxes.
- $14.1 billion in potential market value would exceed Oura’s approximately $11 billion valuation from October 2025.
- $974 million in hardware revenue shows Oura’s core smart ring business remains the largest sales contributor.
Risks & concerns
- 36.5 million of the 50 million offered shares are being sold by existing shareholders rather than Oura.
- $526.4 million of Oura’s expected $532.6 million net proceeds will pay taxes tied to employee share grants.
- $6.2 million would remain for general corporate purposes after Oura meets its accumulated tax obligations.
- 28.7 million Forerunner Ventures shares represent nearly 80% of all shares being sold by existing holders.
- 20% of sales came from memberships, leaving Oura primarily dependent on its $974 million hardware business.