Indian online travel agent MakeMyTrip along with certain shareholders of the company plan to offer and sell up to three million and one-and-a-half million ordinary shares respectively.
With the current share price, the NASDAQ-listed company hopes to raise about $75 million capital through the sale. The shareholders (who are selling) will raise about $35 million in total.
The company says it will not receive proceeds from the sale of shares to be offered by the shareholders.
Funds from the sale of its shares will be used by MakeMyTrip to expand operations by acquiring or investing in strategic businesses or assets that complement its service and product offerings, to invest in technology enhancements, and other general corporate purposes.
The company adds:
"At this time, we have not entered into any agreement or commitment with respect to any material acquisitions or investments."
Citigroup, J.P. Morgan and Deutsche Bank Securities are acting as joint book running managers of the offering.
Mobile channel growth
Below are MakeMyTrip's mobile app download numbers as of February 28, 2014:
- BlackBerry app (launched in early 2011) was downloaded approximately 330,000 times
- Android app (launched in April 2012) was downloaded approximately 1.4 million times
- iPhone app (launched in July 2012) was downloaded approximately 635,000 times
- Windows Mobile app (launched in August 2013) was downloaded approximately 185,000 times
Collectively, the app downloads have crossed 2.5 million.
From above numbers, we can infer that Android app downloads are more than double that of its second biggest platform iOS. Also, the Windows platform (India's second largest smartphone platform) has recorded an impressive growth.
In recent quarterly earnings, the company reported that one-in-five visitors accessed the site via its mobile channel, but when it comes to domestic flights and hotel shoppers the number was even higher at 25%.
NB:Money image via Shutterstock.