Ola Electric to Hold Investor Meetings Ahead of $1 Billion IPO
Key Highlights :
MUMBAI (Reuters) - India's Ola Electric is preparing to hold talks next week with investors in Singapore and the United States ahead of its planned stock market listing, the first of a series of meetings for its up to $1 billion initial public offering (IPO). Two sources with direct knowledge said Ola, which makes electric scooters and is backed by investors such as SoftBank and Temasek, has plans to raise between $600 million and $1 billion in its IPO, which is planned for late 2023.
With the IPO still some way off, Ola is embarking on investor meetings earlier than usual to explain the business potential of India's nascent EV market. Ola's founder and CEO Bhavish Aggarwal will travel to Singapore, United States and United Kingdom over the next two weeks, said the two sources, who declined to be named as the plans are confidential. Aggarwal plans to meet investors, including BlackRock, Singapore's sovereign wealth fund GIC, and mutual funds such as T Rowe Price, the first source said.
India is one of the world's biggest automotive markets with a small but fast-growing EV segment. Ola says it is the market leader in India in e-scooters, selling around 30,000 a month, priced around $1,600 each. Ola Electric is likely to file regulatory papers on the IPO for approval by August, the two sources said.
The investor meetings will focus on Ola's scooter business, its growth prospects and valuation, which is expected to be more than $5 billion, the sources said. Ola competes with other startups and bigger companies like TVS Motors, Ather Energy and Hero Electric, which are ramping up their EV scooter plans. It has also appointed Bank of America as one of its lead managers on the IPO, in addition to Goldman Sachs, Citi and local banks Kotak, Axis and ICICI Securities.
EVs are still an emerging space and while there are some global parallels, it is an even newer story in India. Ola's CEO Bhavish Aggarwal is taking the extra time to create comfort for investors and explain the business potential of India's nascent EV market. With the IPO still some way off, Ola is embarking on investor meetings earlier than usual to ensure that its IPO is successful.
Ola Electric's IPO is expected to be one of the biggest this year, with the company hoping to raise between $600 million and $1 billion. The investor meetings will focus on Ola's scooter business, its growth prospects and valuation, which is expected to be more than $5 billion. Ola has appointed Bank of America, Goldman Sachs, Citi and local banks Kotak, Axis and ICICI Securities as its lead managers on the IPO.
Overall, Ola Electric's planned IPO is a sign of the growing interest in India's EV market. With the IPO still some way off, Ola is taking extra steps to ensure that its IPO is successful. Ola Electric's investor meetings will focus on the company's scooter business, its growth prospects and valuation, and will be attended by investors such as BlackRock, Singapore's sovereign wealth fund GIC, and mutual funds such as T Rowe Price.
