Oyo Hotels to file for IPO next week, targets to earn approximately $1 billion: Reports
Its IPO is provisionally priced between $1 billion and $1.2 billion, according to a source, and will include a new issue of shares as well as an offer for sale from current owners.
SoftBank Group-backed Indian hospitality startup Oyo Hotels and Rooms is set to file for an initial public offering (IPO) next week to earn approximately $1 billion, a person told Reuters on Thursday. The hotel aggregator is aiming to list in Mumbai, India's financial centre. Its IPO is provisionally priced between $1 billion and $1.2 billion, according to a source, and will include a new issue of shares as well as an offer for sale from current owners. Oyo did not immediately reply to a request for comment.
The IPO strategy comes on the heels of Zomato Ltd's successful launch in July. Paytm, which is funded by Berkshire Hathaway Inc, and Nykaa, which is backed by private equity company TPG, have both filed for an IPO. SoftBank-backed ride-hailing company Ola is also planning to reach new areas. During the global health crisis, Oyo, in which SoftBank has a 46% interest and is one of its biggest bets, has faced months of layoffs, cost-cutting, and losses.
In July, Ritesh Agarwal, the company's founder and CEO, stated that it expected business to recover to pre-second wave COVID-19 infection levels in India and "expand from there."
Gaurav Gupta, the creator of Zomato and one of the key movers behind the food delivery company's historic initial public offering (IPO) earlier this year, resigned on Tuesday. Gupta, who joined Zomato in 2015, was named Chief Operating Officer in 2018 and became the founder in 2019. His departure comes only days after Zomato announced the closure of its grocery delivery and nutraceutical businesses.
Oyo received a $5 million investment from Microsoft Corp. last month. According to the source, the bankers advising Oyo on the IPO include Kotak Mahindra Capital, JP Morgan, and Citi.