US-based wearables products manufacturer Fitbit, backed by semiconductor maker Qualcomm and telecoms company SoftBank, is set to raise $731.5m when it floats on the New York Stock Exchange later today, Wall Street Journal reported yesterday.
The company targeted a pricing of $14 to $16 a share, equating to $448m in proceeds, in early June 2015 but increased share pricing to $20, valuing the company at $4.1bn.
Established in 2007, Fitbit has sold 20.8 million health and fitness trackers to date, generating revenues of $745m and a net profit of $132m.
Fitbit secured a total of $83m in equity funding. In 2013, SoftBank contributed to a $43m series D round.
SoftBank is set to sell 515,000 of its 10.2 million shares as part of the offering, retaining a 5.6% stake. Qualcomm has decided to sell 106,000 of its 3.4 million shares retaining a 1.9% stake.
Meanwhile, Foundry Group will retain 26.6%, True Ventures will hold 22.7%, and Sapphire Ventures, the former corporate venturing arm of software producer SAP, will own 3.5%.
Morgan Stanley; Deutsche Bank Securities; Merrill Lynch; Barclays Capital; SunTrust Robinson Humphrey; Piper Jaffray; Raymond James & Associates; Stifel, Nicolaus & Company; and William Blair and Company are serving as underwriters.
The underwriters have a 30-day option to purchase an additional 5.18 million shares, which could boost the IPO by $103.5m.