Airbnb Aims for up to $35 Billion Valuation in IPO Filing

Airbnb

Key Points

  • In its forthcoming stock offering, which could earn the home-sharing giant a valuation as high as $35 billion, Airbnb is aiming to raise around $2.6 billion, an amended regulatory filing revealed on Tuesday.
  • Airbnb’s upbeat stance, which has claimed its home-sharing model has proven robust despite the global coronavirus pandemic with travelers finding safer lodgings and avoiding cramped hotels, has been confirmed by the new filing.
  • The firm may still adjust its offering price, but the value will be as much as $35 billion at current prices, including restricted stock and options. The IPO would raise between $2.3 billion to $2.6 billion.
  • Visit The Financial Today’s homepage for more stories.

NEW YORK — In its forthcoming stock offering, which could earn the home-sharing giant a valuation as high as $35 billion, Airbnb is aiming to raise around $2.6 billion, an amended regulatory filing revealed on Tuesday.

The California group said that its initial public offering will involve about 51.9 million shares in a range of $44 and $50.

Airbnb’s upbeat stance, which has claimed its home-sharing model has proven robust despite the global coronavirus pandemic with travelers finding safer lodgings and avoiding cramped hotels, has been confirmed by the new filing.

No timetable for the start of trading was given by Airbnb, which is planned sometime this month under the trading symbol ABNB.

The firm may still adjust its offering price, but the value will be as much as $35 billion at current prices, including restricted stock and options. The IPO would raise between $2.3 billion to $2.6 billion.

As part of its regulatory filing, the San Francisco-based start-up released specifics of its finances last month.

In the three months ended in September, it delivered a $219 million profit but lost $697 million in the first nine months of the year amid a 32 percent drop in revenue as the Covid-19 epidemic crushed the travel market.

In the first nine months of 2020, Airbnb revenue slipped to $2.5 billion from $3.7 billion a year ago. Its losses were approximately in line with last year’s level for the nine-month period.

According to the filing, the company has had mainly losing quarters but announced gains in the third quarter of each year from 2018.

But during the global health epidemic, Airbnb said its unique business model has proved to be useful both for hosts and travelers wanting a safe environment.

The Airbnb listing arrives amid a flurry of public offerings, many of which since the Covid-19 pandemic has seen resilience and success from the tech industry and on-demand economy.

DoorDash said earlier this week that it planned to raise upwards of $2 billion in a stock market listing for a valuation of more than $25 billion.

During a private investment round in June, the start-up valued at $16 billion saw an increase in demand for food and grocery delivery for shoppers staying home during the health crisis.

Last month, the mobile e-commerce start-up operator Wish also submitted paperwork for a share offering, reporting a customer base of over 100 million.

In recent weeks, cloud data warehouse start-up Snowflake and data analytics company Palantir have both gone public, while gaming start-up Roblox has set plans for its IPO.

Image by Open Grid Scheduler / Grid Engine; AFP contributed to this story.

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