File photo of a Fitbit Flex.JENNIFER ROBERTS/The Globe and Mail
FitBit Inc., the maker of wearable devices that collect data on exercise and sleep patterns, boosted the size of its initial public offering to as high as $656-million (U.S.) amid strong demand for the shares.
FitBit and its stockholders plan to offer 34.5 million Class A shares for $17 to $19 apiece, according to a prospectus filed on Tuesday. Earlier this month, the San Francisco-based company said 29.85 million shares would be offered at $14 to $16 apiece.
At the high end of the new offering range, FitBit would be valued at about $3.9-billion.
FitBit has been marketing its share sale to investors since June 2. During this so-called roadshow, investors submit non- binding requests for the IPO, and if there's enough demand, the bankers can raise the range. The company is expected to set a price for the initial public offering on Wednesday.
FitBit is profitable, with $745-million in revenue last year and more than $100-million in net income. Still, as it markets the sale to investors, the company must show them it can continue growing despite heightened competition and the tendency for many users to stop using activity trackers after a few months.
If FitBit went public at the high end of the range, its price-to-sales multiple would be greater than Apple Inc., Garmin Ltd. and Samsung Electronics Co., which all sell wearable technology. GoPro Inc., the most recent consumer-electronics company to go public, would still be more expensive than FitBit.
Morgan Stanley, Deutsche Bank AG and Bank of America Corp. are managing the offering. The stock will be listed on the New York Stock Exchange under the symbol FIT.