OYO targets $7-8B valuation in IPO filing this November
What's the story
OYO, a global travel tech firm, is gearing up to file its Draft Red Herring Prospectus (DRHP) in November. The company is eyeing an initial public offering (IPO) valuation of $7-8 billion. A board meeting on the proposal is likely next week. SoftBank, one of OYO's biggest shareholders, has been talking to banks about market sentiment.
Valuation insights
SoftBank is examining market sentiment
The valuation guidance for OYO's IPO is pegged at $7-8 billion. This could translate into an EBITDA multiple of 25-30 times. In recent months, SoftBank has been in talks with banks including Axis, Citi, Goldman Sachs, ICICI Bank, JM Financial and Jefferies in London to gage market sentiment.
Growth trajectory
Other updates from OYO
The upcoming filing is likely to highlight OYO's Q1 financial performance, riding on a strong growth phase and improved fundamentals. The hospitality sector has also witnessed double-digit growth during this quarter. OYO is also working on a new parent brand identity for its growing portfolio and considering launching a separate app for its mid-market to premium company-serviced hotels.