Wearables maker Fitbit saw strong growth in its share price following its Initial Public Offering (IPO), indicating that concern about its position in this competitive market is not dampening investor sentiment.
Shares were initially priced at $20, above the range initially suggested by the company, and climbed to around the $30 mark swiftly afterward.
According to regulatory documents, Fitbit has received $420.89 million from the sale, with $266.73 million going to existing shareholders who have sold shares.
Analyst firm IDC recently published its figures for the wearable devices market, which said that Fitbit is “the clear market leader”.
But the market is still at a nascent stage, and Fitbit has a wide range of competitors, with specialist players such as Jawbone and Garmin joined by smartphone makers such as Xiaomi, Samsung and Sony.
And the recent arrival of Apple into the market with its Watch is also set to have an impact, although it is not yet clear to what extent, and how this will impact existing players in the market.
Figures released by Fitbit as part of the IPO process show the company is seeing good momentum.