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Kul Bhushan · · 1 min readOla looks to raise $2b from its IPO early next year
“Ride-hailing aggregator Ola is exploring a public offer early next year, aiming to raise at least US$1.5 billion-US$2 billion, valuing the Bengaluru-based unicorn at US$12 billion-US$14 billion,” Economic Times reported, citing people with knowledge of the matter.
Details:
- Ola will reportedly raise half the targeted capital through the issuance of primary shares, while the remaining will be part of an offer for sale by some early investors.
- The company is working with investment banks such as Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Goldman Sachs for its preliminary filings with India’s market regulator.
Dive deeper:
- The plans for a public listing come after Ola secured US$500 million in a round led by Temasek and a Warburg Pincus affiliate last month.
- The company may face some challenges in securing a higher valuation after the Covid-19 pandemic battered its overall business. In November last year, US mutual funds T Rowe Price and Vanguard had lowered their valuation estimates for the Indian unicorn.
Editing by Collin Furtado and Arpit Nayak
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