Oyo IPO: SoftBank-backed hotel aggregator files draft papers for $1.14 billion initial public offering

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.

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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.