Oyo Said to File for $1.2 Billion IPO Next Week

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 (roughly Rs 7,380 crores), 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 (roughly Rs 7,380 crores) and $1.2 billion (roughly Rs. 8,850 crores), 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 in July. Berkshire Hathaway-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 percent 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 (roughly Rs. 40 crores) investment from Microsoft. Kotak Mahindra Capital, JP Morgan, and Citi are the bankers advising Oyo on the IPO, the source said.

© Thomson Reuters 2021