Fitbit has priced its shares for its IPO
Exercise tracker startup Fitbit is pricing its shares at between $14 and $16 when it IPOs.
The company behind the cult fitness device that measures an individual's activity, plans to offer nearly 22.4m shares from its Class A common stock, while shareholders are selling a further 7.5m of their Class B stock.
Fitbit said in a listing at the Securities and Exchange Commission that it would not receive any proceeds from the sale of those shares, but Fitbit fouders James Park aand Eric Friedman will keep control of the company through its B shares.
After the IPO, B share holders will retain 98.3 per cent of voting power, of which around half is held by directors, executive officers and significant shareholders.
Fitbit, which is defined as an “emerging growth company” will be listed on the New York Stock Exchange as FIT.
Investors are expected to be keen to get their hands on some stock as a way of tapping into this emerging sector. However just a few days ago it emerged that rival Jawbone had filed a lawsuit against Fitbit, alleging the company stole information and data by poaching staff.
Earlier filings have shown the company sold 10.9m devices last year, with a further 3.9m sold in the first quarter of this year.