Skift Take
A cut in IPO size to almost half may be significant, but the confidential pre-filing route provides some flexibility to Oyo. However, the market conditions will determine to a large extent if the hospitality company is able to make the most of it.
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 report