By Rajwa Quasim
Smart ring maker Oura Health is reportedly planning a major IPO that could value the company at more than $16 billion. The company confidentially filed for an IPO in May.
According to Bloomberg, Oura and its existing investors are seeking to raise as much as $3 billion through the IPO. The listing could take place as early as September. Existing investors are expected to sell a significant portion of their stock in the offering, although discussions are ongoing. The company was founded in 2013 in Finland and has offices in San Francisco, employing more than 900 people.
The expected valuation of $16 billion would represent a dramatic increase from the previous valuation of $10.9 billion assigned last September following an $875 million Series E funding round. The round was backed by Fidelity, ICONIQ, Whale Rock, Atreides, Dexcom, The Chernin Group, Forerunner Ventures, Coatue and Temasek.
READ: Elon Musk’s SpaceX stake valued at nearly $907 billion after IPO (August 14, 2026)
Oura has become a prominent player in the market for ring-based devices that track health, fitness and sleep metrics. However, the company has also faced legal challenges related to its products. The Clarkson Law Firm in San Francisco filed a class-action lawsuit accusing the company of misleading customers about the accuracy of its sleep-stage measurements.
According to the complaint, Oura uses AI to estimate sleep stages based on data collected by the ring, with the technology allegedly being only about 50% accurate. The lawsuit claims the ring cannot directly measure the signals needed to accurately track sleep quality or sleep stages.
The complaint states, “To capitalize on consumers’ desire for a tracker that could actually track sleep and monitor their sleep cycles, Oura sold expensive tracking rings, priced at $300 and up, advertising exactly that: that Oura rings are capable of seeing what only a hospital sleep lab can see, including the four different stages of sleep. Oura did not just claim to measure a heartbeat or a temperature, but the exact stage of sleep the wearer is in—which in reality requires electrodes in the scalp and sensors on the eyes, as only a hospital or other clinical setting can do.”
READ: Opendoor shares fall after first-ever stock buyback funded by $650 million debt deal (August 13, 2026)
Oura argued that its ring is not a medical device or a substitute for a clinical sleep study. The company stated, “Like other consumer sleep wearables; Oura Ring estimates sleep stages using multiple physiological signals, including heart rate variability, movement, breathing patterns, and temperature. There is well-documented, peer-reviewed independent scientific evidence that sleep stages are associated with distinct, measurable, reproducible changes in physiology, which is why these signals are reliably used to classify sleep stages.”
Oura said it generated about $500 million in revenue in 2024 and $1 billion in 2025. The company expects revenue to approach $2 billion in 2026.
Oura also faces growing competition in the smart-ring market. Samsung launched its Galaxy Ring in 2024, while Apple has continued to expand its wearable-device business. A successful IPO could give Oura additional capital to compete in the increasingly crowded market and expand its health-tracking technology.