Smart ring maker Oura Inc says it is postponing a planned initial public offering due to market “uncertainty”.
In a Tuesday press release, Oura said it is delaying the stock market float “despite strong demand”.
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.
The company approached the IPO 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 on Wednesday to have grown by 90%.
Oura had planned to sell 50m 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 $13.5bn.