Oura, the smart ring maker, is preparing for an initial public offering (IPO) aiming to raise up to $2.2 billion. However, the majority of the proceeds from this offering are intended for existing shareholders rather than the company itself. Out of 50 million shares being offered at a price range of $40 to $44 per share, about 36.5 million shares will be sold by current investors. At the midpoint price of $42 per share, shareholders would gain approximately $1.53 billion, while Oura would receive around $567 million before fees and expenses.

A significant beneficiary in this IPO is venture capital firm Forerunner Ventures, which plans to fully exit its 9.3% stake, roughly 28.7 million shares, valuing these at about $1.2 billion if priced at $42 per share. This sale accounts for nearly 80% of the shares being sold by existing stakeholders in the deal. Forerunner first invested in Oura back in 2020 during the $28 million Series B funding round, and its full exit through the IPO marks a major liquidity event for the firm.

Oura itself appears to be using the funds raised in the IPO primarily to settle tax liabilities stemming from employee share grants that vest upon going public. According to filings, approximately $526.4 million of the company’s net proceeds, expected to be around $532.6 million at the midpoint, will address these tax obligations. The company will retain just about $6.2 million for general corporate purposes. This indicates that the IPO is more of a financial milestone for shareholders than a capital injection for growth or operations.

Despite the IPO’s structure, Oura is experiencing rapid growth, particularly in its subscription membership business, which now brings in about $240.5 million and carries an 89% gross margin. Alongside strong hardware sales nearing $974 million, Oura expects to have about 5.7 million paying members by the end of its fiscal year on September 30, nearly double from the previous year. If Oura lists shares at the high end of its range, the company could reach a market valuation of $14.1 billion, up from an $11 billion valuation in October 2025.