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Skift Take
Now the brand is finally going public, will investors share the Indian’s company enthusiasm?
Oyo has filed draft papers with the Securities and Exchange Board of India, making its long-rumored quest to go public finally official.
The offering will consist of a fresh issue of shares of up to $942.8 million, and an offer for sale of as much as $193 million, according to Reuters, with the company seeking a valuation of $10 billion to $12 billion.
The IPO follows a wave of fundraising for the brand since its founding in 2013. Softbank-backed Oyo has already raised $4.1 billion in capital since its creation. Microsoft invested $5 million in the company in August — a drop in the bucket for investments but still a sign of confidence in the brand.
Oyo leaders got their affairs in order ahead of going public. Oyo CEO Ritesh Agarwal revealed over the summer plans to narrow the company’s focus to India, Southeast Asia, and Europe while pulling back — but not entirely withdraw — from the U.S. and China.
The filing is the latest in a spurt of similar deals in India. Food delivery company Zomato went public in July while digital payment company Paytm and ridehailing platform Ola are reportedly on the verge of their own IPOs.
Softbank has a 46 percent stake in the company. WeWork, another Softbank-backed startup, notoriously imploded during the IPO process once investors got a chance to look at the shared office brand’s prospectus detailing mismanagement and conflicts of interest with its founder Adam Neumann.
Softbank eventually spent more than $10 billion to take over the ailing coworking brand.
This story is breaking. Please check back for updates.
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