SoftBank-Backed OfBusiness Revives IPO Plans, Aiming to Raise Up to $800 Million

OFB Tech Pvt, the operator of the technology supply chain and financing platform OfBusiness, is reportedly reviving its plans for an initial public offering (IPO) that could raise up to $800 million. The company has engaged major investment firms including Axis Capital Ltd., Morgan Stanley, JPMorgan Chase & Co., and Citigroup Inc. to assist in preparing for the potential listing. Following a delay in its earlier IPO efforts due to subdued market conditions, OfBusiness aims to file its draft prospectus as early as November. The structure of the offering is expected to include a fresh issuance of around $200 million, complemented by sales from existing shareholders.

The Indian IPO market is beginning to show signs of recovery after a sluggish first half of the year, with recent notable offerings such as those from SBI Funds Management Ltd. and Manipal Health Enterprises Ltd. Companies have already raised approximately $6.8 billion from IPOs this year, a significant figure when compared to the record $22.4 billion raised in the previous year. The enthusiasm surrounding upcoming IPOs such as that of OfBusiness suggests a positive sentiment in the grey market, although specific data regarding grey market pricing was not detailed in the reports.

For Indian investors, the revival of the OfBusiness IPO represents a significant opportunity, particularly in light of the ongoing recovery in the IPO landscape. With substantial backing from notable investors such as SoftBank and ongoing interest in the technology supply chain sector, this IPO could attract considerable attention. If successfully executed, it may not only enhance liquidity in the market but also provide investors with a chance to partake in the growth potential of a well-positioned company in a dynamic sector.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)