News reports have stated that Fitbit, Inc., a manufacturer of wearable fitness trackers and accessories, is valued at about $6.5 billion after a strong initial public offering raised approximately $731.5 million.
According to news sources, Fitbit traded higher than expected this morning with an initial public offering (IPO) price of $20 per share, above expectations. It was reported that company shares then rose to $30.40 this morning, approximately 52% since the NYSE’s opening bell.
Fitbit’s IPO shares began trading today on the New York Stock Exchange under the symbol “FIT.” According to the company, it offered 22,387,500 shares and certain selling stockholders offered 14,187,500 shares. In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 5,486,250 shares of Class A common stock.
Tapping into the growing wearable technology market, and offering a wide range of wearable fitness tracking devices, Fitbit’s growth potential seemed to fuel investor demand for shares of the company, sparking the increase in the higher than expected IPO price, news analysts indicated.