Oura, the smart ring maker with offices in San Francisco and Finland, is reportedly planning to raise up to $3 billion in an upcoming U.S. initial public offering (IPO) that could value the company at more than $16 billion. This would mark a significant jump from its previous valuation of over $10 billion last September.

A $16 billion valuation for Oura would be a testament to the success of the wearables market, which has seen increasing competition in recent years. Samsung launched its own ring, the Galaxy Ring, two years ago, and Oura’s primary rival, Whoop, recently valued itself at $10 billion after broadening its appeal beyond elite athletes.

Since launching, Oura has transformed from a biohacking tool for CEOs into a more mainstream brand focused on sleep and recovery. In May, the company filed confidentially for an IPO, aiming to generate revenues of $500 million in 2024, rising to nearly $2 billion by 2026.

However, not all the attention has been positive. A class action lawsuit accuses Oura of misleading consumers about the accuracy of its sleep tracking features, claiming the company falsely claims to measure exact sleep stages without clinical-grade equipment. In response, Oura maintains that its sleep staging has been validated and compared favourably in multiple studies against polysomnography.