Softbank Backs Of Business in its IPO Venture By CIOTechOutlook Team

Softbank Backs Of Business in its IPO Venture

CIOTechOutlook Team | Wednesday, 04 September 2024, 02:24 IST

SoftBank-backed Of Business, an Indian platform supplying raw materials to businesses, is planning a stock market debut in India with a potential value of up to $1 billion, a top executive shared with Reuters on Tuesday.

The company is in discussions with Bank of America, Citi, JP Morgan, and Morgan Stanley to manage the offering, with plans to go public in the latter half of 2025, according to Bhavesh Keswani, the Chief Financial Officer.

The IPO is expected to raise between $750 million and $1 billion, including $200 million in new shares, while the remaining shares will be sold by existing investors to new ones, Keswani explained.

"The IPO proceeds will be directed toward debt reduction and business expansion," Keswani stated, marking the first time the company has publicly commented on its IPO plans.

The four banks did not respond to Reuters' request for comments. SoftBank Group and Tiger Global collectively own about 15%, while Alpha Wave Global holds an 18% stake in the company.

According to a senior industry source, OfBusiness, an Indian platform is targeting a valuation between $6 billion and $9 billion, though Keswani declined to confirm the figures. Founded in 2015 by husband-and-wife team Asish Mohapatra and Ruchi Kalra, OfBusiness has raised over $800 million from investors, with its last funding round in 2021 valuing the company at around $5 billion.