FitBit makes plans for IPO
A month after FitBit filed for an IPO, they released their plans for share prices.
According to the New York Times, FitBit hopes to price their shares between $14 and $16. The company hopes to sell 22.4 million shares, with their existing shareholders selling an additional 7.5 million shares.
Fitbit could raise up to $358.4 million from its sale of shares in the offering, but it will not receive any proceeds from the sale of the 7.5 million shares belonging to existing investors, according to the filing.
The fitness tracker company will have two classes of stock: class A and class B (which will have 10 times the voting power).
FitBit has been doing well since it’s inception in 2007: “Its sales and user base has more than doubled each year for three years straight. FitBit sold 11 million devices last year, raking in $745 million in revenue,” reports CNN Money. FitBit has sold 21 million trackers total. All 7 of FitBit’s devices are on sale in 45,000 retail locations and online in more than 50 countries. There are 9.5 million active users to date as of March 31, according to Mashable.
However, the fitness tracker company recently got into some hot water when they got sued by Jawbone for allegedly stealing Jawbone’s company secrets and poaching employees.