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SoftBank-backed Oyo files draft papers for $1.14 billion IPO

SoftBank-backed Oyo files draft papers for $1.14 billion IPO
SoftBank-backed Oyo files draft papers for $1.14 billion IPO   -   Copyright  Thomson Reuters 2021
By Reuters

BENGALURU -SoftBank-backed Indian hotel aggregator Oyo filed for a $1.14 billion initial public offering (IPO) on Friday, becoming the first hospitality company in the country to seek a domestic stock listing since 2019.

The hotel aggregator’s long-awaited IPO comes at a time when travel restrictions are being eased across the globe and the tourism sector is rebounding as people head out on vacations after lengthy lockdowns.

The offering will consist of a fresh issue of shares of up to 70 billion rupees ($942.8 million) and an offer for sale of as much as 14.30 billion rupees, according to a copy of its draft herring prospectus dated Sept. 30.

According to Oyo’s draft herring prospectus, the offer for sale comprises equity shares aggregating up to 13.29 billion rupees by SVF India Holdings, a firm incorporated in Cayman Islands to hold the investments on behalf of SoftBank Vision Fund L.P.

Oyo is the latest among a clutch of tech-focussed companies to tap a booming Indian IPO market, which has seen roughly 30 firms seeking a stock launch so far this year.

Food delivery player Zomato had a blockbuster stock market debut in July, while Ant Group-backed Paytm and TPG-backed e-commerce beauty firm Nykaa have also filed initial offers to go public.

The offering also comes at a time when Oyo is facing a legal tussle with rival Zostel over a deal between the two Indian hospitality startups that fell apart six years ago.

Reuters reported last week that the firm was looking to raise around $1 billion to $1.2 billion via the IPO.