FitBit Plans to Raise $358 Million Through IPO
Posted on June 4, 2015
FitBit is planning an IPO. TechCrunch is reporting that the manufacturer of wearable fitness devices plans to raise $358 million through its IPO. The FitBit Surge device is pictured above.Wearables are one of the hottest technology categories these days. FitBit will face competition from new devices like the Apple Watch but they have already branded their name and it is associated with wearables and fitness devices.
FitBit plans to sell about 22 million shares at a price between $14 and $16. This would give the company a valuation around $3 billion. FitBit will trade as FIT on the New York Stock Exchange.
The company has disclosed that it made $745.4 million in revenues in 2014. Peter Cohan says in a Forbes article that he expects FitBit shares will climb 20% to 30% when it goes public. Beyond that it will be up to FitBit and how well they can grow revenues and build their brand. Some of this is also going to depend on how much demand there is among consumers for wearable devices and how many of these devices they want to own. There is probably more consumer demand for fitness wearables than smart watches at this point in time.