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Fitbit readies IPO to build on successful 2014

After gaining much traction and obtaining half of its total sales in 2014, fitness wearable device maker Fitbit has filed with the U.S. regulators for an initial public offering (IPO) of its shares.

Fitbit thinks it could raise up to $100 million from the IPO. However, the company did not reveal how many shares it planned to sell or its expected price.

The firm intends to list on the New York Stock Exchange under the symbol "FIT."

Despite facing stiff competition from other fitness wearable makers such as Jawbone and Garmin, Fitbit already had a 68 per cent share of the U.S. fitness tracking device market last year on dollar terms, according to data from research firm NPD Group.

It has sold 20.8 million devices as of the end of March this year, half of which were sold in 2014 alone, tripling the company's revenue to $745.4 million from the previous year. Fitbit also posted a profit of $131.8 million.

While the San Francisco-based fitness-tracker manufacturer has shown promising numbers, Apple has recently entered the competition, with the Apple Watch providing a number of health-related features.

Morgan Stanley, Deutsche Bank Securities and BofA Merrill Lynch were among the underwriters for the IPO.

Sam is Head of Content at Red Lorry Yellow Lorry, and has more than six years' experience as a reporter and content writer, having held the positions of Production Editor, Staff Writer, and Senior Business Writer at ITProPortal.