Stock Groups

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

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – The OYO logo, India’s fastest growing hotel chain and largest, was seen on an Oyo hotel in New Delhi (India) April 3, 2019. REUTERS/Adnan Abidi/File Photo

By Chandini Monnappa

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.

Sources say the hotel aggregator plans to list in India’s capital, Mumbai. Its IPO has been tentatively estimated at $1 billion to $1.2 billion.

Oyo didn’t immediately reply to our request for comment.

This listing follows Zomato Ltd’s July debut. Berkshire Hathaway has also applied for an IPO. TPG-backed Nykaa and Paytm, both private equity firms backed by Inc, have filed. SoftBank is backing Ola, the ride-hailing service, to also enter new markets.

SoftBank holds a 46% share in Oyo and it is its largest bet. It has been through months of cost-cutting, layoffs and losses due to the global healthcare crisis.

Ritesh Agarwal (its founder) had declared in July that the business would likely return to levels before the second round of COVID-19 infection in India. “Grow from there.”

Last month, Oyo received a $5 million investment from Microsoft Corp (NASDAQ:). The source claimed that Oyo was being advised by JP Morgan (Kotak Mahindra Capital), JP Morgan and Citi.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are instead provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



[ad_2]