OYO is expected to file its DRHP for $ 1 billion IPO in the next 10 days

OYO plans to raise between $ 1 billion and $ 1.2 billion in the public market

The IPO offer will likely consist of a new issue of shares and an offer to sell

Inc42 exclusively reported that OYO issued 4,333 free shares to 12 shareholders, including its founder Ritesh Agarwal and SoftBank.

IPO-linked hotel unicorn OYO is expected to file its draft red herring prospectus (DRHP) within the next 10 days, Inc42 sources have informed. Filing a DRHP with the SEBI market regulator is an important step before a company can register on ESB.

DRHP contains detailed information on the IPO offer, the company’s shareholding model, the remuneration of its directors, among others.

OYO is likely to raise $ 1 billion through the IPO and the offer will consist of a new issue of shares and an offer to sell shares, meaning existing shareholders will sell some shares.

Earlier this month, the unicorn of hospitality converted into a public company. It also increased its authorized share capital from its existing INR 1.17 Cr to INR 901 Cr and even prequalified investment bankers such as JP Morgan, Kotak Mahindra Capital and Citi to manage its IPO.

Last week, Inc42 exclusively reported that prior to its IPO, OYO was issuing 4,333 free shares to 12 shareholders, including its founder Ritesh Agarwal, the holding entity of OYO RA Hospitality Holdings, SoftBank, Sequoia Capital and others.

At the time, sources informed Inc42 that the issuance of free shares was part of a capital restructuring exercise following the investment by Microsoft and HT Media. Microsoft had injected $ 5 million into OYO for the exchange of 5 shares and 80 preferred shares.

The issue of free capital shares will have no impact on OYO’s shareholder base. At present, Masayoshi Son’s SoftBank owns 46% of the company’s shares, Agarwal owns 34%, about 7% of the shares are owned by employees, and the rest of the shares are owned by other investors, said the source at Inc42.

In July, OYO raised $ 660 million in term B (TLB) financing from global institutional investors. The Gurugram-based startup said the offer was 1.7 times oversubscribed and the company had pledges of nearly $ 1 billion from institutional investors.

Founded by Agarwal in 2013, OYO is backed by renowned investors such as Masayoshi Son’s SoftBank, Airbnb, Lightspeed Venture Partners, Innoven Capital, Hero Enterprises, among others.

In travel and hospitality, OYO will now follow the lead of another Gurugram-based startup, ixigo, which has filed its DRHP and is heading for an IPO of INR 1,600 Cr. Earlier this year, another EaseMyTrip online travel portal went for INR 510 Cr IPO.

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