By Manya Saini
Sept 29 (Reuters) - Smart ring maker Oura on Tuesday postponed its US initial public offering, the latest high-profile IPO hopeful to shelve its plans as volatile markets dampen investor appetite for new listings.
After a strong start to the year, the US IPO market has hit a bump as investors reassess the sustainability of the massive spending on AI infrastructure and lofty valuations. A spike in bond yields, fears of more rate hikes by the Federal Reserve and geopolitical turmoil have
clouded the sentiment further.
"What is now clear is we are in a very different IPO market to the one we envisaged just a few weeks ago," said Samuel Kerr, global head of equity capital markets at Mergermarket. "Even strong businesses with spectacular economics will face greater scrutiny."
The consumer technology company and some of its existing investors had marketed 50 million shares in the offering priced in an indicated range of $40 to $44 apiece.
At the top of the indicated range, Oura would have raised $2.2 billion at a fully diluted valuation of $15.62 billion. It was expected to price the IPO later in the day and begin trading on the Nasdaq on Wednesday.
The company, founded more than a decade ago in Finland, reached a valuation of about $11 billion in a late-stage funding round last year.
IPOs typically require stable investor appetite and supportive market conditions for companies to achieve their desired valuations.
"Higher rates are clearly making investors more selective, particularly on growth valuations. Still, I wouldn't say the IPO window is closed, especially with Anthropic still pushing ahead with what could be one of the largest IPOs ever," IPOX Research Associate Lukas Muehlbauer told Reuters.
IN A STATE OF FLUX
Earlier this month, nuclear services company Holtec suspended its planned US IPO while Bamboo Insurance has also delayed its listing.
Oura's offering would have been the first sizable fall market US IPO since the traditional summer lull, and analysts had viewed the debut as a key test of investor appetite for high-growth companies.
"We aim to deliver an extraordinary IPO for our employees and investors and we have the luxury of choosing our moment. In the meantime, we will execute against the opportunities ahead," Oura CEO Tom Hale said in a statement.
The company said it was profitable and forecast revenue to jump 90% in fiscal 2026 from a year earlier.
"Reports indicated that the offering was around four times oversubscribed, which is a decent level of demand, but not necessarily overwhelming for a well-known consumer brand," Muehlbauer said.
Meanwhile, AI lab Anthropic is expected to headline the second half of the year for the IPO market, with Reuters reporting, citing sources, that it could debut after the US midterm elections in November.
Oura has helped popularize smart rings, which track metrics such as heart health, activity and sleep.
It added that the response to the launch of its flagship Oura Ring 5 has been "exceptionally strong," bringing the number of paid members on its platform to 5.7 million.
Smart rings are carving out a niche between traditional fitness trackers and smartwatches, offering personalized health insights in a smaller, screen-free form that can be worn around the clock and typically has longer battery life.
(Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila)
