Indian hospitality startup Oyo Hotels and Rooms is all set to file for an initial public offering (IPO) next week to raise around $1 billion.
Oyo Filing For IPO Next Week
Backed by SoftBank Group, Oyo Hotels and Rooms is expected to file for an initial public offering (IPO) to raise around $1 billion, confirmed by sources on Thursday.
It seems that the hotel aggregator is planning to list in India’s financial capital of Mumbai.
Also, this seems to be another major IPO expected this year as domestic stock markets remain buoyant.
So far, Oyo has not publicly commented on the matter.
Most probably its IPO is pegged at between $1 billion and $1.2 billion or roughly Rs 8,000 crore and will consist of a fresh issue of shares and an offer for sale from existing shareholders.
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Many IPO’s In Horizon
Interestingly, Oyo’s listing plans come shortly after a stellar delivery by online food delivery startup Zomato in July.
Apart from these two, Berkshire Hathaway Inc-backed Paytm and private equity firm TPG-backed Nykaa have also filed for IPO earlier.
On the other hand, the ride-hailing company, Ola, which is also backed by SoftBank, is also set to enter markets.
In Oyo, SoftBank owns a 46% stake making it one of its biggest bets.
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Business Likely To Return To Previous Levels
So far, the hospitality firm has endured months of layoffs, cost cuts and losses during the global health crisis.
Earlier, its founder and Chief Executive Ritesh Agarwal said that business was likely to return to levels seen before the second wave of COVID-19 infections in India and “grow from there” in July.
Besides this, Oyo has also received a $5 million investment from Microsoft Corp. Kotak Mahindra Capital, JP Morgan and Citi are the bankers advising Oyo on the IPO last month, according to the sources.
In the middle of September this year, Oyo rooms were dragged to the supreme court by a Siliguri-based hotelier over Rs 37 lakh claim.
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