- Airbnb’s listing is planned for December 2020 on NASDAQ.
- The homestay rental firm expects to price its shares between USD 44 and USD 50 per share.
- Airbnb may soon start a roadshow to showcase its pitch to investors.
The famous home rental startup Airbnb Inc said on Tuesday that it intends to price its shares at USD 44 to USD 50 per share in its IPO, for a valuation of up to USD 34.8 billion in its initial public offering (IPO). The company is prepared to sell USD 2.85 billion at the upper end of the range to attain recovery after the business was massively damaged with the coronavirus pandemic.
Airbnb founders Brian Chesky, Joe Gebbia and Nathan Blecharczyk, will also trade approximately USD 100 million worth of shares during the launch together.
The San Francisco-based company had to lay off 1,900, about 25 per cent of its employees. The business quickly jumped back on track later in the year. Airbnb also raised USD 2 billion in emergency funding from investors as travel came to a grinding halt.
As the lockdown restrictions were eased, the travel sector slowly started to recover. In fact, travellers were seen preferring to reserve private homestays instead of hotels. Consequently, Airbnb delivered profits in the third quarter of 2020. Investors remain keen to explore companies like Airbnb, especially after it retrieved in the third quarter, better than its competitors.
Casting An Eye On Airbnb IPO
Initially, Airbnb had plans to go public in the first half of this year. However, the pandemic thwarted all the plans.
The U.S. rental homes firm’s stock market debut is talk of the town right now as the market is expecting it to be the largest IPO launch in 2020. Equity research firms Morgan Stanley and Goldman Sachs are leading the offering.
Airbnb has registered for the IPO and plans to list on 10 December. It would trade under the ticker “ABNB” on NASDAQ. The Company is likely to get top target range for a fully diluted valuation, which included securities such as options and restricted stock units, nearly a double the USD 18 billion Airbnb valuation in April during private fundraising.
If we consider USD 50 per share, Airbnb’s market capitalisation will reach a total of USD 29.8 billion. Its founders Brian Chesky shares would be worth approximately USD 3.8 billion, whereas, Joe Gebbia and Nathan Blecharczyk shares would be worth USD 3.5 billion each. Investment firm Sequoia Capital was the first to invest in the ambitious Airbnb back in 2009. Its shares would be worth more than USD 4 billion.