SoftBank-backed Oyo to file for $1.2 billion IPO next week - source


FILE PHOTO: The logo of OYO, India's largest and fastest-growing hotel chain, is seen installed on a hotel building in New Delhi, India, April 3, 2019. REUTERS/Adnan Abidi/File Photo

BENGALURU (Reuters) -SoftBank Group-backed Indian hospitality startup Oyo Hotels and Rooms is expected to file for an initial public offering (IPO) next week to raise around $1 billion, a source told Reuters on Thursday.

The hotel aggregator is looking to list in India's financial capital of Mumbai and its IPO is tentatively pegged at between $1 billion and $1.2 billion, the source said, adding it will consist of a fresh issue of shares and an offer for sale from existing shareholders.

Oyo did not immediately respond to a request for comment.

The listing plan follows a stellar debut by food delivery firm Zomato Ltd in July. Berkshire Hathaway Inc-backed Paytm and private equity firm TPG-backed Nykaa have also filed for IPO. Ride-hailing firm Ola, which is also backed by SoftBank, is also set to enter markets.

Oyo, in which SoftBank owns a 46% stake and is one of its biggest bets, has endured months of layoffs, cost-cuts and losses during the global health crisis.

Its founder and Chief Executive Ritesh Agarwal had said in July that business was likely to return to levels seen before the second wave of COVID-19 infections in India and "grow from there".

Last month, Oyo received a $5 million investment from Microsoft Corp. Kotak Mahindra Capital, JP Morgan and Citi are the bankers advising Oyo on the IPO, the source said.

(Reporting by Chandini Monnappa and Rama Venkat in Bengaluru; Editing by Arun Koyyur)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Google pays fines to Russia over banned content
Tesla drives toward $1 trillion club on record Hertz order
Tesla submits partial response in U.S. auto safety probe - memo
France moves to shield its book industry from Amazon
Latest Russian cyberattack targeting hundreds of U.S. networks -Microsoft
Facebook knew about, failed to police, abusive content globally - documents
Thailand to regulate digital platform service businesses
GM, Ford results likely to reflect chip shortage's varying impacts on sector
Facebook ad revenue seen feeling brunt of Apple privacy changes
Amid the US Capitol riot, Facebook faced its own insurrection

Others Also Read


Vouchers