Online Travel Agent, MakeMyTrip (NAZDAQ: MMYT), intends to raise money through another public issue, reports VCCircle. In a filing with the US SEC, MakeMyTrip expressed the intent to offer 6,000,000 shares – 1,600,000 shares on its own, in addition to 4,400,000 shares offered by some undisclosed share holders. It will be able to raise an estimated $43 million based on the last traded price of its stock on NASDAQ which was $26.87. The 4.4 million shares put on sale by other investors are worth $120 million. MakeMyTrip has got Morgan Stanley, Pacific Crest Securities and Deutsche Bank to underwrite the listing.
The funding will be used to expand operations by acquiring or investing in strategic businesses or assets that complement its service and product offerings, for technology upgradation, and for working capital and other general corporate purposes. It also informed the SEC that at this time, it has not entered into any agreement or commitment with respect to any material acquisitions or investments.
This comes after the company’s $100 million IPO, through which it listed at NASDAQ in August 2010. The company registered a profit of $1.77 million in the quarter ended 31st December 2010 on net revenue of $17.3 million. It also acquired a 79% stake in Singapore based Luxury Tours & Travel Pte Limited (LTT) for around $3 million, as an initial cash consideration for ordinary shares, and an investment of $0.75 million until June 2012, for the subscription of new equity shares to be issued by LTT. MMYT will also acquire the remaining shares from existing shareholders over a three year earn-out period ending June 2014, based on valuations linked to the profitability of LTT.
Investors in the company include SAIF, Tiger Global, Helion Ventures and Sierra Ventures.
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