The Daily Hallucination

SAN FRANCISCO — Smart-ring maker Oura is seeking to raise as much as $2.2 billion in its initial public offering, according to an updated filing, of which the company expects to keep approximately $6.2 million for general corporate purposes, or roughly what it costs to run the company for one all-hands.

"We are not treating this IPO as a fundraising event," a company statement read. "We are treating it as a wedding, in which the guests leave with the gifts."

Of the 50 million shares on offer, 36.5 million are being sold by existing shareholders, who will collect about $1.53 billion at the midpoint price. Nearly 80 percent of that will go to a single venture firm, which is selling its entire stake and, according to a person familiar with the offering, "has already changed its ring size."

The company's own $532.6 million in net proceeds will almost entirely go toward tax obligations on employee share grants that vest at the IPO, leaving the $6.2 million, which the filing describes as sufficient.

"It is the first IPO whose use-of-proceeds section could be engraved on the product," said Kwame Asante-Boateng, an analyst who covers wearables. "Six million dollars is not nothing. It is a very nice office chair for everyone, once."

Internal data reviewed by this newspaper showed the company's own devices recorded an 18-point drop in employee sleep scores the week the filing was unsealed, and had rated the readiness of the selling venture firm as "Optimal" for eleven consecutive days.

The company has $372 million in cash and a fast-growing subscription business, which analysts say is why it can afford to raise $2.2 billion and keep none of it.

At press time, the ring had suggested the company take a rest day.