Ola Electric set to go public with IPO on August 2, estimated valuation at $4.4 billion

Backed by SoftBank, the Initial Public Offering (IPO) of Ola Electric will commence for public subscription on Aug. 2, as announced by the Indian electric scooter manufacturer on Saturday. According to two insiders, the company is expected to be valued between $4.2 billion to $4.4 billion.

The offering, which will be accessible to institutional investors a day prior on Thursday, is set to conclude for public subscriptions on Aug. 6, as indicated in the final IPO prospectus filing. The founder of Ola, Bhavish Aggarwal, will sell 37.9 million shares in the IPO, which is approximately 20% lower than the initial estimate in the draft IPO prospectus.

The anticipated valuation of Ola is around 18.5% to 22% less than its previous funding round in September, spearheaded by Temasek, a Singaporean investment firm, which valued the leading e-scooter manufacturer in the country at $5.4 billion.

“Certain distinguished investors are being presented the IPO at the lower range of the $4.2 billion-$4.4 billion valuation,” stated one of the insiders with firsthand knowledge of the IPO arrangement.

Ola is strategizing the IPO at a reduced valuation to encourage higher involvement from investors who are vying for the IPO shares, as per the two sources.

The IPO of Ola Electric, marking a milestone for an Indian Electric Vehicle (EV) manufacturer, is also among the largest in India during a year where the country’s stock markets have achieved numerous record highs and have surpassed Hong Kong to become the world’s fourth-largest stock exchange.

The fresh share issue size of Ola Electric for the IPO remains unaltered at 55 billion rupees ($657 million).

© Thomson Reuters 2024