TBO Tek recently made its debut on the Indian stock exchanges, raising over $180 million from its IPO subscription. The company plans to allocate a portion of these funds towards strategic acquisitions and investments. In the past year, TBO has already made significant acquisitions, including B2B accommodation wholesaler BookaBed and distribution platform Jumbonline. The company’s top bosses expressed optimism about the potential for future acquisitions and expansion, highlighting the positive investor sentiment during the roadshows conducted in India and Asia.
Established in 2006, TBO Tek started as a platform for simplifying airline ticket bookings for travel agents. It has since evolved into a global B2B travel platform that offers a wide range of services, such as flights, hotels, car rentals, transfers, cruises, insurance, cargo, rail, and sightseeing. The company’s expansion strategy involves both geographical diversification and service diversification. TBO plans to strengthen its presence in existing regions like Europe, Southeast Asia, and Latin America, while also focusing on expanding its buyer base in India, the Middle East, and Latin America. Additionally, the company aims to invest in technology to enhance client experience and offer more payment options.
Following its listing, TBO Tek’s shares saw a strong market debut, with a 55% premium over the issue price and closing at $17. The company’s IPO generated significant interest, with an overall subscription rate exceeding 86 times. Retail investors showed keen interest, with a subscription rate of over 25 times, while qualified institutional buyers and non-institutional investors also subscribed at high rates. Despite launching the IPO during an election period in India, TBO’s leaders emphasized their strong belief in the company’s business model and the fundamental strength of the company.
Regarding potential acquisitions, TBO’s leaders expressed a cautious approach, acknowledging that acquisitions can be hit or miss. The company plans to evaluate opportunities for acquisitions that align with its growth strategy and enhance its offerings. TBO’s focus on expanding globally includes establishing local sales and marketing teams, building its supplier base, and improving client accessibility. The company also aims to invest in technology to streamline processes for clients and increase payment options. With a platform that supports payments in over 55 currencies, TBO is poised for further growth and innovation in the B2B travel space.
As TBO Tek looks to execute its growth plans post-IPO, the company’s leaders are focused on living up to the expectations of their new public shareholders. With a strong market debut and positive investor sentiment, TBO is well-positioned to capitalize on opportunities for expansion and acquisitions. By investing in technology, expanding its global footprint, and diversifying its services, TBO aims to solidify its position as a leading B2B travel platform. The company’s successful IPO and strong listing performance signal a promising future for TBO Tek as it continues to navigate the competitive travel distribution market and drive innovation in the industry.
