Airbnb CEO Brian Chesky at the New York Times Dealbook event on November 6, 2019.
Photo credit: Mike Cohen / The New York Times
Airbnb plans to sell for $ 44 to $ 50 per share when it goes public, which translates to a fully diluted valuation of up to $ 35 billion. This emerges from a new filing the company filed with the SEC on Tuesday. The company aims to raise around $ 2.5 billion on the IPO. Existing investors are looking to sell $ 96 million worth of shares in the IPO.
Airbnb’s last private valuation came in at $ 18 billion after borrowing $ 2 billion earlier this year when the company struggled during the first few months of the pandemic. That was almost half of the highest private valuation ($ 31 billion) from 2017.
The company is listed on the Nasdaq under the ticker “ABNB”. The IPO is expected to take place this month. Airbnb’s roadshow, where investors are approached, begins Tuesday.
Airbnb released its first S-1 last month and posted net income of $ 219 million on revenue of $ 1.34 billion for the third quarter of this year, down about 19% year over year. Like most travel companies, Airbnb saw a decline in business due to the Covid-19 pandemic.
After Airbnb cut around 25% of its employees, or around 1,900 employees, in May, business quickly recovered over the course of the year. This was thanks to a surge in rents in rural areas as people sought safe escape amid the pandemic. The company was originally scheduled to go public in the first half of the year, but the pandemic has turned those plans on their head.
But with markets racing on positive vaccine news and last month’s election victory for President-elect Joe Biden, it is a good environment for companies to go public now.
In addition to Airbnb, DoorDash, the maker of the popular food delivery app, is expected to go public this month. DoorDash released its updated S-1 filing on Monday and is targeting a valuation of up to $ 32 billion on its debut. That’s double DoorDash’s $ 16 billion private valuation in June.