Fitbit valued at $4bn after raising flotation price

Smartwatch maker Fitbit was today gearing up for a $4 billion (£2.5 billion) New York listing following strong investor demand.

The company, which makes wristbands that track users’ health and fitness, is set to start trading on Wall Street at $20 a share, significantly higher than the $14-$16 range originally set by bankers.

The flotation is set to be the third largest in the US this year and see Fitbit raise about $723 million for research and development, as well as potential takeovers.

Experts claim the high valuation reflects growing demand for wearable technology among consumers and investors.

The company is currently embroiled in a legal battle with rival Jawbone, which alleges that Fitbit used technology protected by three patents it owns.

Fitbit has vowed to fight these claims. “As the pioneer and leader in the connected health and fitness market, Fitbit has independently developed and delivered innovative product offerings to empower its customers to lead healthier, more active lives,” it said earlier this month.