Airbnb and DoorDash Should Target Higher IPO Valuations

Photographer: David Paul Morris / Bloomberg

Airbnb Inc. and DoorDash Inc. will disclose higher-than-expected valuation ranges for its initial public offerings when it launches its tours this week, according to people familiar with the matter.

Airbnb is targeting a range of $ 30 billion to $ 33 billion, up from the expected $ 30 billion, the people said, asking not to be identified because the case is private. DoorDash forecasts a range of around $ 25 billion to $ 28 billion, more than the $ 25 billion forecast, according to one of the people.

Details of the higher valuations were first reported by The Wall Street Journal. Representatives for Airbnb and DoorDash declined to comment on the matter.

Both companies are looking to go public before year-end, Bloomberg News has reported, capping an unusually active period for new offerings that has also challenged the wider economic downturn triggered by the coronavirus outbreak.

The two had contrasting experiences of the Covid-19 pandemic, Airbnb having seen reservations collapse amid travel restrictions and economic downturn as DoorDash saw revenue more than triple in the first nine months of this year, Americans relying on home dinner food delivery apps.

Read more: Airbnb files IPO revealing effect of pandemic on rentals

– With the help of Ellen Huet