Fitbit IPO shines the spotlight on wearable tech with a $3.7 billion valuation
Written By Allie Quill
Update, June 18: Fitbit stock soars well above expectations, landing among top 10 market debuts this year
In May, FitBit filed for a $100 million IPO, making it the first pure wearable technology company to go public.
The wearables veteran has made recent waves for lawsuits with Jawbone, as well as its recall of the FitBit Force in early 2014 for allergic reactions. However, the rocky path has not stopped the tech titan from reaching great heights in advance of the IPO.
Business Insider reported that “not only was the share count bumped up to 34.5 million from 29.9 million, but so too was the price range, to $17-$19 from $14-$16. That increased the proposed deal size by 38% to $621.0 million, at the mid-point of the new price range.” In short, Fitbit earned itself a $3.7 valuation.
The recent uptick in share quantity and price is just another indication of the booming wearables market and the pioneering gains FitBit is making for technology. Although the company faces immense competition from powerhouses like Apple and China’s Xiaomi, the Fitbit IPO is anticipated to net more than $750 million at the top end of the range.
Nasdaq.com wrote on Tuesday, “Shares of the San Francisco company are generating strong buzz among investors, thanks to an increasingly rare combination for a technology initial public offering: A highly recognized consumer brand, strong revenue growth and annual profit.”
“While the IPO may not be the largest technology offering nor the most-watched,” stated CNET, “it’ll be a symbolic victory for a wearables market that has grown from obscurity to mainstream attention.”
Under the scrutiny of the “mainstream,” Fitbit’s future likely depends on the devices it develops next. Perhaps those “interactive exercise experiences” mentioned in the prospectus are closer to roll-out than we think. More updates to come on Thursday.
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