Business

Fitbit valued at $4.1bn after raising flotation price

Fitbits on display Image copyright Getty Images
Image caption Fitbit is going public amid rising interest and competition in the wearable devices market

Wearable tech company Fitbit has garnered a valuation of more than $4bn (£2.5bn) after selling shares in its initial public offering (IPO).

Fitbit raised $732m after pricing its shares at $20 each, having increased the size and price range for a second time due to strong investor demand.

In its prospectus, Fitbit had initially aimed to sell shares between $14 and $16 each.

Shares will begin trading on the New York Stock Exchange on Thursday.

The firm - which will be using the symbol FIT - plans to use the money raised for research and development and possible acquisitions.

Fitbit makes wristbands that track fitness levels, such as calories burned and distance travelled.

The market for such devices has been growing fast and they compete with new smartwatches from companies including Apple and Xiaomi.

In 2014, Fitbit swung to a profit of $131.8m after at least four years of losses.

Revenues at the San Francisco-based company have jumped 175% in the past year to $745.4m after it sold more than 10 million devices.

For the first three months of 2015, Fitbit's net income was $48m, up from $8.9m in the first three months of 2014.

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