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Health-device maker Fitbit Inc hikes IPO goal by up to 37%

Fitbit is profitable, with US$745 million in revenue last year and over US$100 million in net income.

Fitbit Inc., the producer of wearable devices that collect data on exercise and sleep patterns, boosted the target size of its dpo by as much as 37 per cent to US$655.5 million.

Fitbit and it is stockholders plan to offer 34.5 million Class A shares for US$17 to US$19 apiece, based on a prospectus filed Tuesday. In the high end from the offering range, Fitbit could be valued at about US$3.9 billion. Earlier this month, the San Francisco-based company said 29.85 million shares would be sold at US$14 to US$16 apiece.

Fitbit is profitable, with US$745 million in revenue last year and over US$100 million in net gain. Still, because it markets the sale to investors, the company must demonstrate to them it can continue growing despite heightened competition and the tendency for a lot of users to prevent using activity trackers after a few months.

Morgan Stanley, Deutsche Bank AG and Bank of America Corp. are managing the offering. The stock will be listed on the New York Stock Exchange under the symbol FIT.

Bloomberg.com

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