New Delhi: Bloomberg said hospitality major OYO Hotels is targeting a valuation of $9 billion (Rs 66,700 crore) in its initial public offering (IPO).
The SoftBank-backed firm is expected to get the green light to go ahead with the offering this week or next week after filing preliminary documents last year, people said, adding that Oyo is expected to get Sebi’s nod for its IPO round within the next year. Chances are. few weeks.
The $9 billion valuation they claim the start-up will be targeting will be less than the $12 billion that local media initially reported and probably higher than the $10 billion level the company hit in 2019. Will be less.
Sources said the start-ups have discussed giving up to 15 per cent discount on the $10 billion suggested by bankers during initial discussions.
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The IPO will consist primarily of primary shares, or shares sold by the company, and a smaller portion of secondary stock. SoftBank holds about 47 percent equity and aims to sell a small percentage of the shares.
Founder Ritesh Agarwal holds 33 per cent stake in the company and will not sell his stake through IPO. Apart from Agarwal, Lightspeed Venture Partners, Sequoia Capital, Star Virtu Investment (Didi), Greenox Capital, Airbnb, HT Media and Microsoft are also not reducing their stake.
OYO’s offer will be one of the biggest IPOs after Paytm. In its initial filing, the company said it planned to raise 8,430 billion rupees ($1.1 billion) through the sale of new shares and certain secondary shares, or passes to existing investors.
Bloomberg said that the Covid-19 pandemic suddenly halted the expansion of the start-up. Ritesh Agarwal had to retreat in several markets and lay off thousands of employees. In an interview with Bloomberg TV last year, he said that the pandemic hit Oyo like a ‘cyclone’.
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