Oyo to file for up to USD 1 billion IPO next week: Report
Hospitality startup Oyo Hotels and Rooms is expected to file for an initial public offering (IPO) next week. The firm is planning to raise between USD 1 billion to 1.2 billion through the IPO, news agency Reuters reported.
Oyo IPO will consist of a fresh issue of shares and an offer for sale from existing shareholders. Japanese multinational conglomerate SoftBank owns a 46% stake in Oyo.
The company has appointed investment banks like JPMorgan, Citi and Kotak Mahindra Capital to manage its public issue.
Last week, shareholders of Oravel Stays, the parent company of hospitality firm Oyo, had approved the conversion of the company from a private limited company to a public limited company, according to a regulatory filing.
Subject to receipt of any necessary approvals from any government, statutory or regulatory authority, the name of the company be and is hereby changed from Oravel Stays Private Limited to Oravel Stays Ltd, as per the Registrar of Companies (RoC) filing.
The board of Oravel Stays also approved an increase in the authorised share capital of the company from ₹1.17 crore to ₹9,01,00,00,000.
Oyo has endured months of layoffs, cost-cuts and losses during the global health crisis triggered by the coronavirus disease (Covid-19) pandemic. Its founder and CEO 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 investment from Microsoft Corp. Through the multi-year strategic alliance, the companies till co-develop next-gen travel and hospitality products and technologies, according to a statement.
Oyo will adopt Microsoft Azure as a key enabler to drive cloud-based innovations and reimagine the hospitality and travel tech industry, the statement further said.