SoftBank-backed hospitality startup Oyo Hotels & Rooms has shortlisted JP Morgan, Kotak Mahindra Capital and Citi for a more than $1.2 billion initial share sale, a financial news website reported on Monday, citing multiple industry sources.
The three investment banks were taken on board recently, Moneycontrol reported, quoting one of the sources.
The work on the initial public offering has started, the report said, adding the company is leaning towards a debut in the domestic market but has kept its options open.
Oyo did not immediately respond to a Reuters’ request for comment while the three investment banks declined to comment.
Ritesh Agarwal, Oyo’s chief executive officer and founder, had said in July that its business was likely to return to levels seen before the second wave of COVID-19 infections in India and “grow from there”.
The hotel aggregator, in which SoftBank owns a 46 per cent stake and is one of its biggest bets, has endured months of layoffs, cost cuts and losses during the global health crisis. However, with easing travel curbs and increasing vaccinations, travel demand is slowly picking up in India.
Microsoft Corp in July was in advanced talks to invest in Oyo at a valuation of $9 billion in a prelude to Oyo’s IPO, Reuters had reported, citing a source familiar with the matter.