The Indian manufacturer of electric scooters, Ola Electric, announced on Saturday that its initial public offering (IPO), supported by SoftBank, will begin on August 2 and will value the company between $4.2 billion and $4.4 billion, based on two sources.
According to the final IPO prospectus filing, the issue will close for retail subscriptions on August 6 and open for institutional investors one day earlier on Thursday. In the IPO, Ola founder Bhavish Aggarwal will divest 37.9 million shares, which is about 20% fewer than what was projected in the preliminary IPO prospectus.
In comparison to its most recent funding round in September, which was headed by Temasek, an investment firm based in Singapore, and valued the nation’s largest e-scooter manufacturer at $5.4 billion, Ola’s expected valuation is approximately 18.5% to 22% lower.
One of the sources with direct knowledge of IPO planning stated that some well-known investors are being offered the IPO at the lower end of the $4.2 billion—$4.4 billion valuation range. According to the two sources, Ola is organising the IPO at a lower valuation to attract more investors to place bids on the IPO shares.
The first initial public offering (IPO) for an electric vehicle manufacturer in India, Ola Electric, is among the largest in a year that has seen the nation’s stock markets hit several all-time highs and surpass Hong Kong to become the fourth-largest bourse globally.
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