India's Jio IPO opens for public bids in record US$3.2 billion sale

India's Jio Platforms is set to launch its US$3.2 billion IPO on Wednesday, October 21st, marking the largest share sale in India's history and the first from billionaire Mukesh Ambani's conglomerate in two decades. Jio Platforms is the country's second-largest telecom operator, boasting over 500 million subscribers, trailing only behind China Mobile.

The IPO valuation reaches an estimated US$108.3 billion, potentially positioning Jio Platforms as one of India's most valuable companies by market capitalisation upon trading commencement on October 28th, with approximately a third of shares reserved for retail investors.

The IPO, backed by Meta, Google, and institutional investors, aims to gauge global interest in new share offerings amidst heightened scrutiny of AI-related companies. Jio Platforms' rapid growth is attributed to its affordable data plans and free voice services, which have attracted millions of subscribers. The company's IPO comes during India's festive season, believed to be an auspicious time for investments, yet Indian markets have been relatively stagnant recently.

Jio Platforms attributed around 90% of its profit of US$3.2 billion to its telecom business, which generated revenues of US$15.5 billion in the year to March. The company allocated shares worth US$853 million to global and domestic investors, including the Abu Dhabi Investment Authority and BlackRock, after the reserved portion for such investors saw bids totaling more than US$25 billion.

Jio Platforms' first IPO since 2006, this sale surpasses previous major listings such as Hyundai Motor India and National Stock Exchange. Ambani had previously committed to listing the company within five years, a plan delayed in 2025 due to the Iran war and its impact on IPO appetite.