Ola Cabs Mulls IPO Move

Ola Cabs Mulls IPO Move (Image Source: iStockphoto)

Indian ride-hailing giant Ola Cabs is gearing up for an initial public offering (IPO) aiming to raise a substantial USD 500 million, sources familiar with the matter disclosed to Reuters on Friday. With SoftBank’s backing, Ola stands as a formidable competitor to Uber in India’s thriving transportation market.

According to insiders, Ola intends to initiate the IPO process by filing requisite papers with the country’s market regulator within the next three months. While the sources opted for anonymity due to the confidentiality of the matter, they revealed Ola’s ambitious plans to attain a company valuation of approximately USD 5 billion through this offering.

The report added that Ola has remained tight-lipped about the developments, declining to comment on the speculation. However, insiders disclosed that the company is actively engaging with prominent investment banks, including Goldman Sachs, Bank of America, Citi, and Indian firms Kotak and Axis. Plans are underway to finalize IPO advisors within the coming month.

While Citi and Bank of America refrained from commenting on the matter, the remaining banks did not respond to requests for input.