 "OYO, Oyo rooms, Oyo app, Oyo logo")
The company will refile papers for approval after the bond issuance, the source said, without specifying a time frame.
Indian budget hotel aggregator Oyo has withdrawn its papers for an initial public offering (IPO), regulatory disclosures showed, the second time the company has pulled its flotation plans in nearly three years.
The reason for the withdrawal was not immediately clear from the disclosure on the Securities and Exchange Board of India (SEBI) website, which showed the Softbank-backed firm withdrew its papers on May 17.
Oyo did not respond to a Reuters request for comment, but a source with direct knowledge of the matter said the firm is close to finalising a refinancing plan and is looking to raise $350 million to $450 million through bond issuance.
“The refinancing will result in material changes to Oyo’s financial statements. Hence as per existing regulations, it will need to revise its filings with the regulator,” the source said.
Since the decision for refinancing was at an advanced stage, it did not make sense to continue pursuing IPO approval with the current financials, according to the source.
The company will refile papers for approval after the bond issuance, the source said, without specifying a time frame.
Oyo had filed to go public for the first time in 2021, and was seeking a valuation of up to $12 billion. It renewed its plans in March last year by confidentially filing its papers with the SEBI.
The company is also looking to tap private investors for equity funding at a $3 billion to $4 billion valuation to cut debt, the source said, citing founder and CEO Ritesh Agarwal’s comments at a company town hall on Wednesday.
The hotel aggregator, launched in 2013, has cut hundreds of jobs and seen the exit of a string of senior executives as it struggles to bring down its debt load.
First Published: May 22 2024 | 11:58 PM IST
