MakeMyTrip Announces Pricing of Share and Convertible Note Offerings
MakeMyTrip Limited (NASDAQ: MMYT), a leading online travel company in India, recently announced the pricing of concurrent offerings consisting of Class A ordinary shares and convertible senior notes. This strategic financial move aims to bolster the company’s financial position and fuel future growth initiatives.
The company priced an underwritten public offering of 4,761,905 Class A ordinary shares at a price of $21.00 per share. Simultaneously, MakeMyTrip priced an offering of $200 million aggregate principal amount of 3.00% convertible senior notes due 2029 in a private offering to qualified institutional buyers.
The net proceeds from the share offering are estimated to be approximately $95.4 million, after deducting underwriting discounts and commissions and estimated offering expenses. The company also granted the underwriters a 30-day option to purchase up to an additional 714,285 Class A ordinary shares.
The convertible notes will bear interest at a rate of 3.00% per year, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024. The notes will mature on June 1, 2029, unless earlier redeemed, repurchased, or converted.
Holders may convert their notes prior to the close of business on the business day immediately preceding March 1, 2029, only under certain circumstances. Thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time. The initial conversion rate is 38.8055 Class A ordinary shares per $1,000 principal amount of notes, representing an initial conversion price of approximately $25.77 per share.
MakeMyTrip anticipates utilizing the net proceeds from these offerings for general corporate purposes, which may include funding organic growth, strategic investments, and potential acquisitions. The offerings are expected to close on or about May 10, 2024, subject to customary closing conditions.
This strategic financial maneuver reflects MakeMyTrip’s commitment to strengthening its market position and expanding its reach in the burgeoning Indian travel market. The company’s proactive approach to capital management positions it for continued success and innovation in the online travel sector.
Key Points
- Class A Ordinary Share Offering: 4,761,905 shares priced at $21.00 per share.
- Estimated Net Proceeds (Share Offering): Approximately $95.4 million.
- Underwriters’ Option: 30-day option to purchase up to 714,285 additional Class A ordinary shares.
- Convertible Senior Notes Offering: $200 million aggregate principal amount.
- Interest Rate (Convertible Notes): 3.00% per year, payable semi-annually.
- Maturity Date (Convertible Notes): June 1, 2029.
- Initial Conversion Rate: 38.8055 Class A ordinary shares per $1,000 principal amount of notes.
- Initial Conversion Price: Approximately $25.77 per share.
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