Flipkart is likely to choose between Singapore, or the United
States for the initial public offering.
Walmart
Inc-controlled Indian e-commerce firm Flipkart is preparing for an initial
public offering overseas as early as 2021, which could value the firm up to $50
billion, sources familiar with the company's plans told Reuters.
Bengaluru-based Flipkart, which vies with players such as Amazon.com's local
unit in India and India's Reliance Industries, will be aiming for a valuation
in the $45-$50 billion range, according to one source with knowledge of the
matter.
If achieved, that
would mean Walmart would have more than doubled its investment.
Flipkart
is likely to choose between Singapore, or the United States for the initial
public offering (IPO), said two other sources, who asked not to be named as
discussions are private.
"Flipkart is
incorporated in Singapore, but listing in the United States, where parent
Walmart is headquartered, could give it access to a deeper pool of funds,"
one of the sources said.
Flipkart and
Walmart did not respond to Reuters requests for comment.
The sources said
the preparations and discussions have been largely internal for now, but the
company is preparing to tap external advisers on the process soon.
The discussions come
as India drafts new regulations that could pave the way for domestic companies
to directly list overseas.
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