Airbnb plans to value at $44 to $50 per share in its IPO, giving it a valuation of up to $35 billion on a totally diluted foundation, in accordance to a brand new submitting the corporate submitted to the SEC Tuesday. The firm seeks to increase about $2.5 billion in the IPO. Existing traders search to promote $96 million value of inventory in the IPO.
Airbnb’s final non-public valuation was $18 billion, after it raised $2 billion in debt earlier this 12 months as the corporate struggled in the early months of the pandemic. That was almost half its peak non-public valuation ($31 billion) from 2017.
The firm will listing on the Nasdaq below the ticker “ABNB.” It’s anticipated to maintain its IPO later this month. Airbnb’s roadshow, the place it makes its pitch to traders, will begin Tuesday.
Airbnb launched its first S-1 final month, reporting internet revenue of $219 million on $1.34 billion in income in the third quarter of this 12 months, down about 19% from the 12 months earlier than. Like most journey firms, Airbnb has seen a drop in enterprise due to the Covid-19 pandemic.
But after chopping about 25% of its employees, or about 1,900 staff, in May, Airbnb noticed its enterprise shortly bounce again later in the 12 months. That was thanks to a surge in leases in rural areas as folks seemed for protected escapes amid the pandemic. The firm was initially anticipated to IPO in the primary half of the 12 months, however the pandemic upended these plans.
But with markets ripping greater on constructive vaccine information and President-elect Joe Biden’s election win final month, it is a good setting for firms to go public now.
In addition to Airbnb, DoorDash, the maker of the favored meals supply app, can be anticipated to IPO this month. DoorDash launched its up to date S-1 submitting Monday, and is searching for a valuation of up to $32 billion in its debut. That’s double DoorDash’s final non-public valuation of $16 billion in June.