OYO's Third IPO Attempt Delayed Due To SoftBank Opposition: Report

Oyo, the budget hotel chain is planning to delay its third IPO attempt as its largest shareholder SoftBank has opposed the decision, amid market volatility. The company is now aiming to list by March 2026 at a valuation of $7 billion.

According to a Bloomberg report, SoftBank does not favour Oyo's plan to list in October and has pressed the firm to hold off on a public offering until the time that its earnings are stronger, the report added.

OYO Founders' Plans

Ritesh Agarwal, the founder of Oyo had urged for an initial public offering (IPO) to meet the conditions that were related to a restructured $2.2 billion loan that he had secured in 2019 for raising his stake in the company, it said.

The son of SoftBank's founder Masayoshi had personally guaranteed the loan and had set a payment deadline for the first installment in December, with lenders indicating they may extend the repayment timeline if Oyo is listed this year.

However, the hotel chain may get an extension on the loan in exchange for delaying the IPO, the report added.

Previously, the company had filed to go public for the first time in 2021, and it was seeking a valuation of nearly $12 billion. It also renewed its plans in March 2023 as it filed its papers with the Securities and Exchanges Board of India (SEBI), before delaying the issue last May.

Also Read: What’s Changing in Your Wallet This May? All You Need To Know