Fitness wearable maker, Fitbit made its Initial Public Offering (IPO) on Thursday with a valuation of $6.5 billion. The startup began trading on the New York Stock Exchange with the symbol ‘FIT’, and opened at $30.40, a 52% increase from the company’s initial offering of $20 and closed at $29.68. According to the company’s S1 filling, it controls 85% of the wearable fitness tracking market. To date, Fitbit has raised a capital of $732 million.
Founded by Eric Friedman and James Park, Fitbit has a range of fitness tracking devices such as Fitbit One, Fitbit Zip, Fitbit Flex, and Fitbit Charge. These are wireless wearable sensor devices that automatically tracks data about a person’s activities, such as calories burned, sleep quality, steps and distance. The company sold 10.9 million devices in 2014 and generate a revenue of $745.4 million.
It is expected to generate $1 billion revenue this year, and close to $200 million in profit. According to International Data Corporation, the market for wearable devices will reach 126.1 million units shipped in 2019, representing a $27.9 billion worldwide revenue opportunity. In 2014, shipments of wearable devices was more than tripled compared to the prior year, reaching a total of 19.6 million units shipped.
Fitbit is the second U.S. wearable technology company to go public, following action camera-maker GoPro which was listed around this time in 2014. The Fitbit’s IPO was led by Morgan Stanley, Deutsche Bank and Bank of America.
Going forward, the company will continue to introduce new features and services to increase user engagement and revenue. It acquired FitStar in March 2015 to enhance its software and services offerings through interactive video-based exercise experiences on mobile devices and computers. Fitbit also plans to continue making significant investments in research and development to further strengthen its platform through both internally-developed and acquired technologies.