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Summary
- Airbnb Inc is reportedly planning to increase the target price range of its initial public offering.
- The company is expected to debut on Nasdaq on Thursday, December 10.
- Airbnb had announced on December 1 that with a share price range of US$ 44 to US$ 50 apiece, its planning to raise a market valuation of up to US$ 34.8 billion.
Online rental place provider Airbnb Inc is reportedly planning to increase the target price range of its initial public offering (IPO) to the range of US$ 56 to US$ 60 per share. Earlier in December, the company had said that its shares would be priced between US$ 44 and US$ 50 a pop at the upcoming IPO.
The unicorn company is likely to announce about its raised IPO price range on Monday, December 7, as per media reports.
If Airbnb goes for the upper end of its US$ 56 to US$ 60 per share range, it could raise up to US$ 3.1 billion at its IPO. This could result in the company having a fully diluted valuation of nearly US$ 42 billion, up from that of US$ 35 billion which it would make with the initially announced IPO price range of US$ 44 and US$ 50 apiece.
Airbnb Inc is expected to get publicly listed on the American stock exchange platform of Nasdaq on Thursday, December 10. This IPO is expected to be one of the largest ones in the US for 2020.
While some media portals have carried this report, Airbnb is yet to make any official comment.
a little background on airbnb inc.
Airbnb Inc was an invention that came into being in 2008 as a result of necessity. Founders Brian Chesky, Joe Gebbia and Nathan Blecharczyk were struggling to fund a trip in 2007 while also paying for their accommodation. So, two of them decided to rent out a section of their housing to cover the costs. And hence, came the idea of Airbnb.
After over a decade of business, the San Francisco-based company decided to go public earlier in 2020.
© Kalkine Group Image
Airbnb had announced on December 1 that with a share price range of US$ 44 to US$ 50 apiece, its planning to raise a market valuation of up to US$ 34.8 billion.
The company is reportedly set to sell nearly 52 million shares at its upcoming IPO and make up for some of the losses it endured due to the coronavirus pandemic this year. The three founders of Airbnb are also expected to trade shares worth about US$ 100 million at the IPO.
Riddled by COVID-related challenges, Airbnb reduced its workforce by about 25 per cent this year. It also raised about US$ 2 billion in emergency funding from its investors.
2020 ipo Season
The latter half of 2020 recorded a surge in IPOs after a slow start due to the pandemic. So far, companies such as Warner Music Group, Palantir Technologies, Snowflake Inc, Nuvei Technologies, Lighthouse POS, etc have debuted at the stock markets this year. Food delivery app DoorDash Inc also recently launched the roadshow for its IPO.
