Fitbit Surge

San Francisco-based Fitbit disclosed in an amended SEC filing that it plans to price its shares between $14 to $16 and raise up to $358 million in its imminent IPO. Fitbit will debut as “FIT” on the New York Stock Exchange.

The company's directors, executive officers, and significant stockholders will hold around 51.9 percent of Fitbit's capital stock. Fitbit will sell 22.4 million shares itself and the company's stockholders will sell 7.5 million shares.

After deducting estimated underwriting discounts and commissions as well as estimated offering expenses that Fitbit is paying, the company estimates that the net proceed from the sale of shares will be $310.8 million. This is based on an assumed initial public offering price of $15 per share, the midpoint of the price range. If the shares are priced at $16, the total amount raised in the IPO for both Fitbit and its stockholders could hit nearly $478 million.

Fitbit initially filed for its IPO in early May. In its first filing, the company revealed that, since its founding in 2007, Fitbit had sold more than 20.8 million devices as of the end of March 2015. The company offers a half dozen fitness tracking wearables, but also offers a connected weight scale, the Aria, which has FDA clearance. 

Fitbit is in 45,000 retail stores in more than 50 different countries. The company said that of its retailers and distributors, Wynit Distribution, Best Buy, and Amazon.com accounted for approximately 13 percent, 12 percent, and 11 percent, respectively, of its revenue last year. For the first three months of 2015 those three accounted for about 19 percent, 10 percent, and 11 percent of its revenue.

The company, which is profitable, had revenues of $14.5 million in 2011, $76.4 million in 2012, $271.1 million in 2013, and $754 million in 2014. It posted a net loss for the first three of those years but net income of $131.8 million last year. It also posted an adjusted EBIDTA of $79 million in 2013 and $191 million in 2014. For the three months of 2015, Fitbit posted revenues of $336.8 million, net income of $48 million, and adjusted EBITDA of $93.4 million.

Just a few weeks after Fitbit filed its IPO, one of its biggest competitors, Jawbone, sued Fitbit. Jawbone alleges that Fitbit poached employees who downloaded sensitive data about Jawbone before leaving the company. In recent months Jawbone has been under fire for production issues of ones of its wearable devices and leaks about the company's financial situation, which is rumored to be tenuous. And this week, a report from The Information found that Jawbone laid off 20 employees, which is roughly 4 percent of their workforce. A spokesman told The Information that the layoffs were part of a restructuring.