Airbnb programmes to price at $44 to $50 per share in its IPO, giving it a valuation of up to $35 billion on a fully diluted basis, according to a new systematizing it submitted to the Securities and Exchange Commission on Tuesday. The company aims to raise about $2.5 billion in the initial supporters offering. Existing investors seek to sell $96 million worth of stock in the IPO.
Airbnb’s last private valuation was $18 billion, after it coin it in sift out $2 billion in debt earlier this year as the company struggled in the early months of the coronavirus pandemic. That was hardly half its peak private valuation ($31 billion) from 2017.
The company will list on the Nasdaq under the ticker “ABNB.” It’s needed to hold its IPO later this month. Airbnb’s roadshow, where it makes its pitch to investors, will start Tuesday.
Airbnb manumitted its first S-1 last month, reporting net income of $219 million on $1.34 billion in revenue in the third quarter of this year, down encircling 19% from the year before. Like most travel companies, Airbnb has seen a drop in business due to the Covid-19 pandemic.
But after biting about 25% of its staff, or about 1,900 employees, in May, Airbnb saw its business quickly bounce back later in the year. That was gives to a surge in rentals in rural areas as people looked for safe escapes amid the pandemic. The company was originally calculated to go public in the first half of the year, but the crisis upended those plans.
But with markets ripping higher on unmitigated vaccine news and President-elect Joe Biden’s election win last month, it’s a good environment for companies to go public now.
In addition to Airbnb, DoorDash, the maker of the well-liked food delivery app, is also expected to hold an IPO this month. DoorDash released its updated S-1 filing Monday, and is quest after a valuation of up to $32 billion in its debut. That’s double DoorDash’s last private valuation of $16 billion in June.