Fitbit IPO could top $500M
An initial public offering of Fitbit, the maker of wearable devices that collect data on exercise and sleep patterns, could top $500 million, according to mulitiple reports.
Fitbit and its stockholders plan to offer 29.85 million Class A shares for $14 to $16 apiece, according to a prospectus filed Tuesday.
Fitbit would be valued at about $3.3 billion at the high end of the offering range. The company is profitable, with 2014 revenues of $745 million and has more than $100 million in net income. In its prospectus, Fitbit cites Jawbone, Samsung Electronics and Apple’s smartwatch as competitors.
Fitbit said it plans to develop more products and services, increase its marketing efforts, expand distribution globally and build relationships with corporations for employee wellness programs. The company plans to use the proceeds from the IPO for research and development, sales and marketing, and capital expenses and potential acquisitions.
Fitbit offers seven devices, ranging from $59.95 to $249 each which are sold in more than 45,000 retail stores. The company was founded eight years ago by James Park and Eric Friedman who had previously started Wind-Up Labs, an online photo-sharing company acquired by CNET Networks in 2005. Park is president, CEO and chairman of Fitbit, and Friedman is the chief technology officer.
Fitbit will have two classes of shares after the offering, with Class B representing 10 votes and Class A providing one vote per share. Foundry Group, True Ventures and SoftBank Corp. are investors in Fitbit.
Morgan Stanley, Deutsche Bank AG and Bank of America Corp. are managing the offering. The stock will be listed on the New York Stock Exchange under the symbol FIT.
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.