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Fitbit share flotation to raise up to $358m | Fitbit share flotation to raise up to $358m |
(35 minutes later) | |
Wearable tech company Fitbit has said it will price its shares between $14 and $16 each in its initial public offering, raising up to $358m (£234m). | Wearable tech company Fitbit has said it will price its shares between $14 and $16 each in its initial public offering, raising up to $358m (£234m). |
In a filing with US regulators, Fitbit said it would sell 22.4 million shares. At the top end of the price range, the company would be valued at $3.3bn. | |
Fitbit makes wristbands that track your fitness levels, such as calories burned and distance travelled. | Fitbit makes wristbands that track your fitness levels, such as calories burned and distance travelled. |
It announced plans to list on the New York Stock Exchange last month. | It announced plans to list on the New York Stock Exchange last month. |
In its prospectus, the company said it would benefit from an increasing focus from consumers on health and fitness. | In its prospectus, the company said it would benefit from an increasing focus from consumers on health and fitness. |
Based on research from International Data Company, the company estimates that by 2019 the wearable devices market could be worth $27.9bn based on shipments of 126.1 million devices. | Based on research from International Data Company, the company estimates that by 2019 the wearable devices market could be worth $27.9bn based on shipments of 126.1 million devices. |
However, the company warned that there were "several challenges to overcome". | However, the company warned that there were "several challenges to overcome". |
This includes "competition from larger, more established traditional health and fitness companies, uncertainty as to whether consumers will adopt our products... and our relative lack of experience selling other products and services". | This includes "competition from larger, more established traditional health and fitness companies, uncertainty as to whether consumers will adopt our products... and our relative lack of experience selling other products and services". |
In 2014, Fitbit reported a profit, making $131.8m compared with a loss of $51.6m the previous year. | |
For the first three months of 2015, Fitbit's net income was $48m, up from $8.9m in the first three months of 2014. |
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