The Chain Hotel Oyo Invested By Softbank Is Said To Have Shelved This Year's IPO Plan And Listed As Early As 2023

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Many people familiar with the matter said today that Indian economy hotel chain Oyo will shelve its IPO (initial public offering) plan this year, mainly worried that the market downturn may affect its valuation. After consulting with bankers and investors, the board of directors of Oyo discussed the timing of the IPO at several meetings last week and earlier this week, these people familiar with the matter said. People familiar with the matter said that if Oyo accelerates the IPO process again before the end of the year, it may be listed as early as 2023.

In fact, as early as March this year, it was reported that Oyo was considering halving the financing scale of IPO, or even shelving the listing plan for the time being.

People familiar with the matter said at that time that in the face of a series of adverse factors, including the sharp decline of the stock market, Oyo may reduce the IPO Financing scale by half, that is, from about $1 billion to about $500 million. At the same time, the company is also considering halving the expected valuation of IPO from the initial $12 billion to about $6 billion. If the market environment is still not optimistic, Oyo may even decide to suspend the IPO plan.

Analysts said today that this decision (shelving IPO) will make Oyo a victim of the downturn in the global technology industry. With the growing concern about inflation, the continuation of the epidemic and the volatile international environment, investors withdrew from high-risk investments. This year, the NASDAQ index has plunged 26%.

Ashuosh Sharma, an executive at Forrester Research, said: "this is not the best time for any IPO. Startups simply can't get the best valuation."

Funded by investors such as Softbank, Oyo is a fast-growing Indian start-up, but it has struggled during the epidemic. Last year, Oyo submitted its listing application in India with the goal of IPO in early 2022.

Prior to this, many other startups that have obtained IPO approval have chosen not to conduct IPO temporarily, such as Delhi, India's largest independent e-commerce logistics startup, and API holdings, the parent company of pharmeasy, India's largest online pharmaceutical company.

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