Fit­bit may raise up to $358 mil­lion in IPO

Los Angeles Times - - COMPANY TOWN - By Tracey Lien tracey.lien@la­ Twit­ter: @traceylien

Fit­bit Inc., a maker of wear­able ac­tiv­ity track­ing de­vices, is look­ing to raise up to $358 mil­lion in an ini­tial public of­fer­ing, ac­cord­ing to a reg­u­la­tory fil­ing made Tues­day.

The San Fran­cisco com­pany plans to sell more than 22 mil­lion Class A shares for $14 to $16 apiece, with some ex­ist­ing stock­hold­ers plan­ning to sell an ad­di­tional 7.5 mil­lion shares. On the higher end, this would value the com­pany at $3.3 bil­lion.

The com­pany faces stiff com­pe­ti­tion in the wear­ables mar­ket, with Jaw­bone, Ap­ple and Sam­sung of­fer­ing ac­tiv­ity track­ers sim­i­lar to those in Fit­bit’s lineup.

The com­pany didn’t de­tail spe­cific plans for the pro­ceeds, but said it could use some of the funds to strengthen its po­si­tion in the mar­ket via re­search and devel­op­ment, ac­qui­si­tions and mar­ket­ing.

Ac­cord­ing to its prospec­tus, Fit­bit had $745 mil­lion in rev­enue last year and more than $100 mil­lion in profit. Since 2007 the com­pany has sold about 20.5 mil­lion of its fit­ness track­ing de­vices, which range in price from $59.95 to $249 and are sold in more than 45,000 re­tail stores.

Fit­bit and sim­i­lar ac­tiv­ity track­ers gained pop­u­lar­ity in re­cent years for the abil­ity to count steps, mon­i­tor calo­ries burned and track time spent sleep­ing, ap­peal­ing to health-con­scious and data-ob­sessed con­sumers.

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