Accommodation and hospitality firm OYO is expectedly preparing to file the introductory papers for its initial public offering (IPO) next week.
The organization is planning to raise around $1-1.2 billion with this public issue, according to a statement citing unnamed sources. The report additionally added that the offer will consist of both fresh as well as a secondary issue to provide exit possibilities to existing shareholders.
As per media releases issued last month, OYO had shortlisted investment banks JP Morgan, Kotak Mahindra Capital, and Citi for this public issue.
OYO was established in 2013 by Ritesh Agarwal, who is the second-youngest self-made billionaire in the world after American model and entrepreneur Kylie Jenner. It has expanded its presence beyond 800 cities in 80 countries. The company claims to have a chain of over 100,000 small hotels and homeowners.
Over times, OYO has received investment from some big names in the financing world. This involves SoftBank, Citadel, AirBnb, didi, and more. Microsoft was the newest investor in the business. It drew in $5 million, at a valuation of $9.6 billion.
The hotels and hospitality giant has gathered over $4 billion to date.
OYO raised $660 million in debt from undisclosed institutional investors to return its past debts, strengthen balance sheets and encourage product technology. “OYO is well capitalized and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic,” the company’s chief financial officer Abhishek Gupta had said.