OYO, one of the highest valued hotel chain startup companies from India, has just filed a prospectus to go public.
Unlike many other startup companies that go public outside their home countries, OYO plans to go public on India's stock exchange.
Details of the IPO
- OYO plans to raise approximately $1 billion via their initial public offering.
- The company plans to raise most of its capital via the sale of secondary shares.
- Founder Ritesh Agarwal and SoftBank's Vision Fund are OYO's two largest shareholders, both holding a combined stake of 79% of the company.
Why It Matters
- OYO has been seeking to go public even before the global pandemic struck. With travel bans and country-wide lock-downs, OYO's business was affected significantly.
- Prior to this, OYO raised $660 million in debt financing to weather the pandemic and to explore other streams of revenue.
- Funds raised by the upcoming IPO will be used to pay off existing debt obligations and fund growth — which would include mergers and acquisitions.