OYO’s initial public offering (IPO) of $ 1-1.2 billion will have about 20-25 percent secondary component. However, founder Ritesh Agarwal is unlikely to download any stakes, according to sources familiar with the development.
Agarwal has more than a 30 percent stake in the company.
The company, which was last valued at $ 9 billion, is aiming for a valuation of around $ 12-14 billion.
The Softbank-backed hospitality firm is set to submit an initial public offering as soon as next week, Moneycontrol reported on Sept. 23.
In July, Moneycontrol first reported that the company was aiming for an initial public offering by the end of 2021.
The company that has been recovering from the pandemic has completely changed its revenue sharing model compared to the previous one, where it would pay hotel partners a minimum guarantee to work with OYO.
It is also focusing heavily on technology and recently announced a partnership with global tech giant Microsoft to develop smart room experiences for travelers, such as personalized in-room experiences.
The partnership occurs in conjunction with a $ 5 million strategic investment from Microsoft in the company.
The company has also launched a self-registration service that would allow hotel owners to get up and running on the platform in 30 minutes. The measure is expected to reflow the number of hotels on the platform, which experienced a massive decline due to the pandemic.
Oyo did not immediately respond to the media inquiry.