Date
24 May 2017
A Fitbit fitness-tracking watch is shown at a gadget store. The company is valued at US$4.1 billion after it completed the third largest US listing this year. Photo: Bloomberg
A Fitbit fitness-tracking watch is shown at a gadget store. The company is valued at US$4.1 billion after it completed the third largest US listing this year. Photo: Bloomberg

Fitbit now worth US$4.1 bln after US listing beats expectations

Fitbit Inc. has raised US$732 million in an initial public offering after pricing it at US$20 per share, well above market expectations.

The maker of wearable fitness-tracking devices sold 36.6 million shares, giving it a valuation of US$4.1 billion, according to a person familiar with the offering cited by the Wall Street Journal.

The haul, which makes Fitbit the third largest US listing this year, does not include an overallotment option which allows underwriters to sell additional shares.

The San Francisco-based company had planned to sell 34.5 million shares in the range of US$17 to US$19 each.

But the price and the size of the offering were raised amid robust demand among investors attracted by Fitbit’s strong brand, solid revenue growth and strong profit potential.

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CG/RA

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