Marriott International announced 13 deal signings in Turkey comprising over 2,000 rooms.
25.08.2023 - 13:54 / skift.com / Peden Doma Bhutia
Oyo disclosed on Friday that it is reducing the size of its proposed initial public offering to between $400-$600 million, a steep reduction from its plan to value the offering at $1.1 billion, a source close to the company told Skift. Oyo pre-filed its draft red herring prospectus on Friday with the Indian stock market.
Oyo has pre-filed the draft papers under the recently-introduced confidential pre-filing route, and is likely to launch the initial public offering around the Indian festival of Diwali (around November 12) once the Securities and Exchange Board (SEBI) of India approval comes in.
The pre-filing route will give Oyo some flexibility in terms of timing and sizing of the initial public offering (IPO), the source said.
The reported issue size of $400 to $600 million will now be a primary issuance (new shares being issued by the company for the public), to repay most of its debt, the source added. “For now, an issue timing of around Diwali is likely once SEBI approves.”
This could help improve the company’s financial position and credibility in the market.
Oyo declined to comment on the matter.
The confidential pre-filing route option was allowed by the Indian regulator in November 2022 as part of bringing in progressive and globally popular practices.
The confidential pre-filing option has been available in global economies such as US, UK and Canada. Companies like Airbnb, Lyft and Spotify have opted for the confidential pre-filing route.
Tata Play (formerly Tata Sky) was the first company in India to pre-file confidential draft papers in November 2022.
Under this route, the filing is available at the initial stage, only to the regulator. The new option provides companies more flexibility on issue size during the initial stage.
Unlike the traditional route where companies have to launch the IPO within 12 months from the SEBI approval, or final observation; in the pre-filing route, an IPO can be floated within 18 months from the date of SEBI’s final comments.
While the route also provides flexibility to change primary issue size by 50 percent till the updated draft red herring prospectus stage, market conditions may make it difficult for Oyo to opt for an increase the size.
In December, SEBI had advised Oravel Stays, the parent company of Oyo, to refile the draft prospectus, updating all the relevant sections such as risk factors, key performing indicators, outstanding litigations and basis for offer.
Oyo’s last submission to the Indian regulator, in November last year, was of its updated financial results for the first half of financial year 2022-23.
During the update, Oyo had reported that its adjusted earnings before interest, taxes, depreciation, and amortization for the second quarter
Marriott International announced 13 deal signings in Turkey comprising over 2,000 rooms.
India-headquartered online travel agency Yatra Online plans to launch its initial public offering (IPO) on September 15. The company, which is listed on the Nasdaq since 2016, had filed a draft red herring prospectus on March 25 last year with the Indian regulatory body Securities and Exchange Board of India (SEBI) with a goal of raising up to INR 7.5 billion.
Good morning from Skift. It’s Thursday, September 7. Here’s what you need to know about the business of travel today.
Ankit Gupta, the India CEO of hospitality technology platform Oyo, and Mandar Vaidya, the head of Oyo’s European operations, will both be moving on from the company.
Buoyed by the strong recovery in India’s domestic travel demand, online travel company Yatra.com plans to launch its Indian initial public offering by March next year.
India-based budget hotel operator and aggegator Oyo updated its draft red herring prospectus with results for the first half of the fiscal year signalling its intent to soon launch its initial public offering.
China’s latest loosening of its stringent zero-Covid policy, mostly for domestic tourism, comes across as too little too late, at a time when the rest of the world is living with the virus.
Registering a record performance for the first six months of the financial year, Dubai state carrier Emirates Airline on Thursday reported a net profit of $1.08 billion for the first half of the financial year, compared to a loss of $1.6 billion for the same period last year.
India-headquartered travel tech firm RateGain Travel Technologies is acquiring Adara, a Silicon Valley-based firm in travel martech and predictive consumer intelligence. The cost: a mere $16.1 million, according to RateGain’s filing on the Indian stock market, which puts Adara, long troubled with management and competition issues for the last few years, out of its misery.
The initial public offering of India-based budget hotel operator and aggregator Oyo may be further pushed back from its intended deadline of a launch within the first quarter this year.
India is making a PCR Covid test mandatory for inbound arrivals from China, Singapore, Hong Kong, Thailand, Japan, and South Korea, from January 1.
Keen to pursue its long-anticipated initial public offering (IPO), hospitality tech company Oyo has said it would be refiling its draft red herring prospectus with the Indian stock market regulator Securities Exchange Board of India (SEBI) by mid-February.