Ride-hailing aggregator Ola is reviewing a public offer early next year with the goal of raising at least $ 1.5 billion to $ 2 billion and valuing the Bengaluru-based unicorn at $ 12 billion to $ 14 billion. This makes it one of the big tech IPOs that want to benefit from a liquidity-driven market rally.
The proposed listing of Ola, whose main investors include SoftBank, Tiger Global Management and Tencent, will raise half of the c -ital through a primary offering, while the rest will be done through an offer to sell (OFS) from some early funders aware of the matter, ET said.
Investment banks such as Morgan Stanley, Goldman Sachs, Kotak Mahindra C -ital, Citigroup and JP Morgan are expected to work with the company to file preliminary documents with the market regulator over the next two months.
“There could be a few more banks as the issue is likely to be over $ 1.5 billion. The final mandates themselves are expected this week,” said one of the above.
Earlier this month, Warburg Pincus and Temasek Holdings invested $ 500 million in Ola, along with two other companies, in what is known as a pre-IPO round.
Ola CEO Bhavish Aggarwal did not respond to requests sent on Sunday. The banks mentioned were not immediately available for comment.
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“Whatever was said and done evaluating Ola would be a challenge. Many funds have lowered ratings over the past year as the Covid pandemic and subsequent lockdown hampered the taxi market. Although he is recovering, it will take time to stabilize, ”said one of the named people.
In November, US investors T Rowe Price and Vanguard lowered their ratings of Indian unicorns, including Ola, due to the disruption caused by the Covid-19 pandemic.
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