Hotel Aggregator OYO Likely To File IPO for $1.2 Billion Next Week: Report

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Indian hospitality start-up OYO Hotels and Rooms, which is backed by SoftBank Group, is likely to file an initial public offering (IPO) this coming week to raise funds up to $1 billion, reported Reuters on Thursday, 22 September. Banks including Kotak Mahindra Capital, JP Morgan and Citi are reportedly advising the hospitality firm on the IPO.

A source told the news agency that OYO is intending to be listed at India's financial capital Mumbai. Its IPO is expected to be between $1 billion and $1.2 billion.

Besides, an offer for sale of share from existing shareholders, the IPO will also have fresh issue of shares.

Also Read: Microsoft Corporation Invests $5 Million in OYO at $9.6 Bn Valuation

The move by the hotel aggregator comes after several organisations, such as Zomato, Paytm, and Nykaa, also filed IPOs in the recent times. Ride-sharing company Ola, which is also backed by SoftBank Group, is reportedly set to enter markets soon.

According to Reuters, OYO, whose 46 percent stake is owned by SoftBank Group, has had to face multiple challenges, including lay-offs and cost-cuttings due to the COVID-19 pandemic.

In July, Ritesh Agarwal, the founder and chief executive of the company, had said that their business was likely to be back to levels seen before COVID-19 second wave in India and "grow from there".

In August, Microsoft had invested $5 million in OYO.

Also Read: OYO Rooms CEO, Ritesh Agarwal Writes A Letter To India

(With inputs from Reuters.)

. Read more on India by The Quint.We Are Living Next To Each Other But Are We Living With Each Other?Hotel Aggregator OYO Likely To File IPO for $1.2 Billion Next Week: Report . Read more on India by The Quint.

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