Ola Electric, backed by SoftBank, announced on Saturday that its IPO will be available for retail subscription starting August 2. The Indian electric scooter manufacturer's stock offering is expected to value the company between $4.2 billion and $4.4 billion, according to two sources.
The issue will open for institutional investors on August 1 and close for retail subscriptions on August 6, as per the final IPO prospectus. Ola founder Bhavish Aggarwal plans to sell 37.9 million shares in the IPO, which is about 20% less than initially estimated in the draft prospectus.
Ola's anticipated valuation is approximately 18.5% to 22% lower than its previous funding round in September, which was led by Singapore's Temasek and valued the company at $5.4 billion. One source with direct knowledge of the IPO planning revealed that some prominent investors are being offered shares at the lower end of the $4.2 billion-$4.4 billion valuation range.
The company is planning the IPO at a lower valuation to encourage greater investor participation. Ola Electric's IPO marks the first for an Indian electric vehicle maker and ranks among the largest in India this year, amidst record highs in the country's equity markets and its recent rise to become the world's fourth-largest bourse, surpassing Hong Kong.
The fresh share issue size of 55 billion rupees ($657 million) for the IPO remains unchanged.
