Oyo Hotels is reducing the shares it aims to sell via a stock-market debut by about two-thirds, an effort by its founder to get the sale done even after tech valuations plunged.
The once-high-flying company is preparing to file a fresh initial public offering document as soon as this week, said two people familiar with the matter, who asked not to be named discussing internal matters. In the filing, Oyo will outline plans to sell just a third of the new shares it originally planned, eroding the amount of fresh capital it is expected to receive, one of the people said.
The plan shows how founder Ritesh Agarwal, 29, is trying to push through an IPO even at weaker terms to alleviate the financial pressures on the hotel and lodging booking company and himself.
While the travel market has improved from the pandemic-era trough, Oyo-once valued around $10 billion as India's Airbnbequivalent is still reporting mounting losses. Agarwal, meanwhile, took on billions of dollars of debt to boost his holding in the firm.
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