Sina Technology News on the evening of June 18, Beijing time, it is reported that Paytm, India's leading digital payment service provider, said today that it will sell 1.6 billion US dollars of new shares as part of its IPO (initial public offering) plan.
Paytm said in a notice today that it hopes to sell 120 billion rupees ($1.61 billion) of new shares in the IPO, plus a potential over-allotment of 1 per cent (for underwriters). On July 12th, Paytm will hold an extraordinary general meeting of shareholders. At that time, Paytm will seek shareholder approval of the plan.
Paytm plans to list in India around November and is expected to raise 218 billion rupees ($3 billion), making it the largest IPO in India's history, it was reported on May 27th. People familiar with the matter also said at the time that Paytm's target valuation for the IPO was between $25 billion and $30 billion.
On June 7, Paytm confirmed to shareholders and employees that it plans to apply for IPO, to raise money by issuing new shares and selling shares of existing shareholders. Moreover, the IPO plan has been approved in principle by the board of directors. Paytm also provides employees with the option to sell shares in the company.
Paytm has the largest market share in Indian merchant payments, and its main competitors includeWal-MartIts PhonePe,GooglePayment,AmazonPayment, andFacebookIts WhatsApp Pay. According to the data, Paytm has more than 20 million merchant partners and its users conduct 1.4 billion transactions per month.
According to people familiar with the matter, Paytm has hired four investment banks to act as underwriters for the IPO, includingJPMorgan Chase和Goldman SachsGroup.
Indian companies have raised about $4 billion through IPO so far this year, the best start to the year since 2018, according to data. In recent months, a number of large Indian start-ups have expressed their desire to go public.
Earlier this year, Indian takeout platform Zomato said it planned to raise $1.1 billion through IPO. Last month, Flipkart was negotiating more than $1 billion in pre-IPO financing.