OYO to file $1.2 billion IPO next week

Bhubaneswar: Indian hospitality startup OYO Hotels and Rooms may file an initial public offering (IPO) next week and the goal is to raise around $1.2 billion, Reuters quoted a source today.

The hotel aggregator, whose 46 percent stake is owned by Japanese multinational conglomerate, has been facing losses and cost-cuts since the global pandemic hit. In July, OYO’s founder and Chief Executive Ritesh Agarwal was reported by media stating that business would return to levels it was on before the second Covid wave swooped Indian economy and grow from there.

OYO is reportedly aiming to list India’s financial capital of Mumbai and will have fresh issue of share and offer for sale from existing shareholders. As per a statement, it will adopt Microsoft Azure as a key enabler to drive cloud-based innovations and bring new changes to hospitality and travel tech industry.

In August, OYO had received a $5 million investment from Microsoft Corp. following a multilayer strategic alliance.