Author : Damini Chandankar
Image Credit - Economic Times
Zomato, the food-delivery app ready to be the first among a developing tribe of Indian tech startups is aiming a listing this year, is expected to raise $750 million to $1 billion through its initial public offering (IPO). But no investor is willing to exit or take money off the table by selling their shares.
No existing shareholder will sell any shares in their IPO. People believe that Zomato will be a $50 billion company in five years and it will be unfair to sell shares at this point of time.
The IPO will most probably be a 100% primary offering, considering the long-term growth that the investors expect from the stock. Which implies the company will end up raising more capital, rather than shareholders offloading stock in the open market.