Fitbit are ready to go public and the pioneer in wearable fitness-tracking devices will raise more than $600 million as soon as later on today, and this will be the fifth-largest U.S IPO in 2015. The company will go public tomorrow, on thursday.
Innovalon Holdings raised $685. GoDaddy raised $520, while Etsy raised $307. As you can see, Fitbit would be one of the largest tech debuts so far in 2015.
Some investors are sceptical about the company and its shares. Are they able to compete against Apple Watch, they said? According to Nasdaq their share price is set to $17 – $19 each share, and shares offered/outstanding is 34,500,000.
The company has a strong revenue growth and annual profit, and there is a strong buzz among investors before they go public, and this is building up a strong demand for Fitbit`s shares. The firm will be valued at $3,7 billion with its estimated price range of $17 – $19 a share.
Fitbit doubled the number of devices sold to 10,9 million from 4,5 million between 2013 and 2014. Revenue tripled in the same period. Net income for 2014 came in at $132, on $745 million in revenue. It is expected to see revenue at $1,4 billion in 2015 and $1,7 billion in 2016.
Fitbit is more like GoPro Inc. GoPro went public last year and the stock more than tripled in October last year. Fitbit has a lower valuation and trade at 21,6 times the past years reported earnings through March 31, compared with 82 times for GoPro, FactSet data show.
Some Fitbit customers has experienced an allergic reaction on their wrists, but others are obviously happy with the new product like the U.S President Barack Obama which is a user of this «hot new trend» right now.
The wearable devices can track daily steps calories burned and floors climbed, as well as sleep duration and quality. Fitbit have many different wearable devices and some of them can track your heart rate and collect information about distance, speed and exercise routes.
I have had my wearable device in 20 years, but now it has become mainstream. A hot trend. I will be very surprised if this products over goes the mobile trend. A mobile phone is a «must have», but a wearable device like Fitbit is a «funny-thing-to-have».
Fitbit will start trading Thursday morning on NYSE under the symbol «FIT».
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