Fitbit IPO is shaping up to break records

Wearable tech company Fitbit has issued a filing with US regulators stating it will sell just shy of 22.4 million shares of its Class A common stock as part of its forthcoming IPO on the NYSE. Classified as an “emerging growth company” under federal securities laws, the valuation put forwards by some analysts means the firm’s is even higher than competitor GoPro, whose listing last year became the most successful Silicon Valley consumer electronics debut of all time.

Fitbit anticipates the initial public price of the shares will number somewhere in the region of $14 to $16, and, should the upper band prove accurate, the company could fetch approximately $358m.

Fitbit anticipates the initial public price of the shares will number somewhere in the $14 to $16 region

The company is known primarily for its range of connected health and fitness devices, and is a leader in the fast-growing wearable tech market. “Fitbit is transforming the way millions of people around the world achieve their health and fitness goals”, according to the company’s regulatory filing. “Our platform helps people become more active, exercise more, sleep better, eat smarter, and manage their weight.”

Founded in 2007, the company has since gone on to spearhead a number of industry advances, and, as of March 31, has sold over 20.8 million devices. By utilising Fitbit’s open platform and growing community of users, the company says it has “established a growing ecosystem that includes thousands of third-party health and fitness apps that connect with [its] products and enhance the Fitbit experience”.

The company last year tripled its revenues (from $271.1m to $745.5m) and sales this year look likely to cross the $1bn mark.

Although wearable technology is struggling to gain acceptance among much of the population, the obstacles standing in its way have done little to curtail growth, and BI Intelligence estimates that the market will grow at a compound annual growth rate of 35 percent in each of the next five years. Another study by IDC estimates that 45.7 million units will be shipped this year, and forecasts that fitness brands will begin to lose their commanding share of the global market.

“The explosion of wearable devices was clearly led by fitness bands, which until recently commanded prices that provided comfortable margins, but those days are changing”, said Ryan Reith, Programme Director of IDC’s Worldwide Quarterly Device Trackers, in the report. “The price of these fitness bands [has] come down so significantly in some markets that smartphone [manufacturers] are now bundling them with smartphones at little cost. Meanwhile, the market is quickly shifting toward higher-priced devices that offer greater functionality.”