Smart ring maker Oura is set to raise up to $2.2 billion in its upcoming IPO, but most of the proceeds will go to shareholders, not the company. At the midpoint price of $42 per share, shareholders will pocket around $1.53 billion, while Oura receives only $567 million.

Forerunner Ventures, Oura’s second-largest shareholder, plans to sell its 9.3% stake, worth about $1.2 billion, to recoup an investment made in 2020. The company aims to use most of its proceeds to settle tax obligations tied to employee share grants.

Despite the financial structure of the IPO, Oura is growing rapidly, with its membership business contributing significantly to its revenue. The company now expects to have 5.7 million paying members by the end of the fiscal year, nearly doubling the number from the previous year. However, Oura’s net proceeds from the IPO will be minimal, leaving it with just $6.2 million for general corporate use.

In a move that seems to be a flex for Oura’s early backers, the company is using the IPO to provide an exit and fulfill tax obligations without resorting to debt or tapping its cash reserves. The offering comes as Oura’s hardware business continues to dominate its revenue, while its membership service is showing strong profitability.