A Oyo hotel in Kuala Lumpur, Malaysia / Photo credit: Shutterstock
Oravel Stays, which operates India-headquartered hotel chain Oyo, has refiled its draft red herring prospectus (DRHP) under the pre-filing route to float an IPO around November, a source close to the development told Tech in Asia.
The SoftBank-backed company is eyeing to raise between US$400 million and US$600 million, depending on market conditions, Tech in Asia understands.
The amount is half of the US$1.2 billion it had intended to raise earlier, when Oyo filed for a listing in India in October 2021. It was eventually delayed due to volatile market conditions.
The pre-filing route, however, gives Oyo the flexibility to change the primary issue size by up to 50% till the updated DRHP stage. This means its IPO size could potentially reach US$900 million.
See also: 6 key findings from Oyo’s $1.2b IPO filings
In an employee town hall earlier this week, Oyo founder and group CEO Ritesh Agarwal reportedly said that the company’s cash flow has improved and its “reliance on external funds has gradually decreased over time.”
For financial year-end 2023, Oyo is expecting a revenue of around US$693 million, up 19% from FYE 2022.
In December 2022, the company laid off nearly 600 employees as part of a restructuring move. It also cut down operations in China and the US to focus on India, Southeast Asia, and Europe.
Editing by Thu Huong Le and Eileen C. Ang
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