Zomato eyes $8.7 bn listing valuation, IPO launch likely in mid-July

Multinational restaurant aggregator Zomato has increased its primary fund raise by 20 percent to $1.2 billion and is eyeing a listing valuation of $8.7 billion. The offer size is likely to have increased to $1.25 billion from the initial $1.1 billion. This has come after demands for the same have been raised by EM fund and global tech specialist funds. Quoting sources, CNBC TV18 reported that the company is currently planning to launch the IPO by mid-July. The offer for sale (OFS) has been reduced by 50 percent to $50 million. According to the publication, the owner of an 18.5 percent stake in Zomato, Info Edge is going to present the OFS. Previously, Info Edge had declared in the upcoming IPO, shares worth Rs 750 crore would be sold by the company. Other shareholders of the company are Uber BV holding which has 9.13 percent. Alipay Singapore Holding Pte Ltd holds 8.33 percent while Antfin Singapore Holding Pte. Ltd has around an 8.22 percent stake in the company. The Livemint reported that a pre-IPO placement will be undertaken by the company in consultation with the managers. At a final price, which the company is going to decide, the aggregate amount is not going to exceed Rs 1,500 crore. Reportedly, Zomato has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), the Indian market regulators. The company stated that it is going to offer equity shares worth Rs 8,250 crore in the IPO. Of this, fresh shares would be worth Rs 7,500 crore while Rs 750 crores worth of shares would be sold through OFS.