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Airbnb plans to set a price of $ 44-50 per share when it goes public, which will give it a valuation of up to $ 35 billion on a fully diluted basis, according to a new filing the company submitted on Tuesday. to the SEC. The company is looking to raise around $ 2.5 billion when it goes public. Existing investors are looking to sell $ 96 million of shares on the IPO.
Airbnb’s latest private valuation was $ 18 billion, after raising $ 2 billion in debt earlier this year as the company struggled in the early months of the pandemic. This was almost half of its maximum private valuation ($ 31 billion) compared to 2017.
The company will be listed on the Nasdaq under the symbol “ABNB”. It is expected to hold its IPO later this month. Airbnb’s roadshow, where he makes his pitch to investors, will begin on Tuesday.
Airbnb released its first S-1 last month, reporting net profit of $ 219 million on $ 1.34 billion in revenue in the third quarter of this year, down about 19% year-on-year former. Like most travel agencies, Airbnb has experienced a decline in activity due to the Covid-19 pandemic.
But after slashing about 25% of its workforce, or about 1,900 employees, in May, Airbnb saw its business rebound rapidly later in the year. It was thanks to an increase in rentals in rural areas as people sought safe escapes amid the pandemic. The company was originally scheduled to go public in the first half of the year, but the pandemic has upended those plans.
But with the markets booming thanks to positive vaccine news and President-elect Joe Biden’s election victory last month, it’s a good environment for business now.
In addition to Airbnb, DoorDash, the maker of the popular food delivery app, is also expected to go public this month. DoorDash released its updated S-1 filing on Monday and is seeking a valuation of up to $ 32 billion in its debut. This is double the last private valuation of DoorDash of $ 16 billion in June.
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