Rise sharing company, Ola may come up with its Initial Public Offer ( IPO) in early 2022 to raise a minimum of $1.5-2 billion at a valuation of $12-14 billion, a report in The Economic Times said.
Bhavish Agarwal led Ola will raise 50% of the capital through a primary issue and the other half through an offer for sale (OFS) from some early backers.
Citigroup, Kotak Mahindra Bank and Morgan Stanley are likely to manage the initial public offering (IPO) for the company, Bloomberg had earlier reported.
In another report by The Hindu, Bank of America is also said to be one of the banks to handle the IPO of Uber technologies rival.
“Whatever said and done, Ola’s valuation would be a challenge. Many funds have lowered valuations during the previous year as the Covid pandemic and the subsequent lockdown hampered the travel cab market. Although it’s recovering, it will take time to get stabilised,” said a source close to the development.
A few days back, as per media reports, Ola Electric Mobility, a separate business under ANI Technologies, raised as much as $1 billion from strategic and financial investors. JP Morgan facilitated the deal.
Last month, Ola Electric raised $100 million or about Rs 774 crores from the state-run Bank of Baroda to finance the first phase of construction of the world’s largest electric two-wheeler factory. Ola Electric focuses on manufacturing electric vehicles.
In August, Hero MotoCorp also announced its electric two-wheeler model which is likely to go on sale either this year or next year. In April this year, Hero MotoCorp entered into an agreement with Taiwanese company Gogoro to share battery swap and technology features.