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.
© Thomson Reuters 2021