IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer

IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer

SUMMARY

OYO is likely to issue fresh share worth $700 Mn to $800 Mn in its IPO offer

It is likely to file its DRHP in next 10 days with SEBI, sources inform Inc42

The hospitality unicorn is seeking a $12 Bn to $14 Bn valuation

IPO-bound hospitality unicorn OYO which is going to file its draft red herring prospectus (DRHP) with the market regulator SEBI in next 10 days is likely to have around 75% primary component and the remaining 25% as the secondary component in its offer. 

According to sources, OYO’s IPO offer will include fresh issues of share ranging between 70% to 80% of the offer, and the remaining will consist of secondary issues, meaning the shareholders in the company will sell some portion of their shares. 

OYO is likely to go for an IPO ranging between $1 Bn to $1.2 Bn. Based on calculations, the hospitality unicorn is likely to issue fresh shares worth $700 Mn to $800 Mn and the rest which is likely to be around $200 Mn will be offered for sale. The startup is eyeing for $12-$14 Bn valuation and has shortlisted investment banks such as JP Morgan, Kotak Mahindra Capital and Citi to manage its IPO. 

As per a ET report, OYO’s founder Ritesh Aggarwal who holds around 30% stake in the hospitality unicorn is not likely to offload any shares during the anticipated IPO. At present, SoftBank holds 46% shares in the company, Agarwal holds 34%, about 7% of shares are held by employees and the remaining shares are held by other investors, Inc42 had reported earlier.

Founded by Agarwal in 2013, the startup is backed by marquee investors such as Masayoshi Son’s SoftBank, Airbnb, Lightspeed Venture Partners, Innoven Capital, Hero Enterprises among others. 

OYO last raised $5 Mn from US tech giant Microsoft in exchange for 5 equity shares and 80 preference shares at a valuation of $9 Bn. Earlier in July, the startup closed $660 Mn in term loan funding from global institutional investors. The Gurugram-based company said that the offer was overscribed by 1.7 times and the company received commitments of close to $1 Bn institutional investors. 

In the hospitality space, OYO follows the suit of Gurugram-based startup ixigo, which has filed its DRHP and is heading for an INR 1,600 Cr IPO. Earlier this year, another online travel portal EaseMyTrip went for INR 510 Cr IPO and only recently crossed a $1 Bn market cap.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer-Inc42 Media
IPO-Bound OYO To Have 75% Primary & 25% Secondary Component In Its Offer-Inc42 Media
You’re in Good company