The house rental company has set the price range for its float between $ 44 and $ 50 per share. Airbnb said it would sell up to 55 million shares, including a so-called “greenshoe” option to sell an additional 5 million shares that could bring in an additional $ 250 million, bringing its total proceeds before costs to 2, $ 75 billion. Existing investors will sell around 1.9 million shares on the IPO.
At the top of the price bracket, the company is said to have a market value of $ 29.8 billion, a feat given that its operations have been moribund for part of this year after the pandemic and government travel restrictions worsened. reduced its activities, causing a collapse in reservations on its Platform.
People briefed on the company’s listing process had said Airbnb was aiming for a valuation of between $ 25 billion and $ 30 billion. Some investors have bought stock warrants valuing Airbnb at $ 18 billion this year. Airbnb plans to list on Nasdaq under the symbol ABNB.
The company’s ability to reach the top of its target valuation would underscore the extent to which public investors are clamoring for fast-growing tech groups. Shares of companies in sectors such as enterprise software and cloud computing have reached new highs in the market.
Meanwhile, November was one of the strongest months on record for US stocks, following double-digit monthly gains. The sentiment was heightened by Joe Biden’s victory in the US presidential election and the breakthroughs of the Covid-19 vaccine.
Airbnb will begin its roadshow this week, when it tries to convince investors that its business has rebounded from the depths of the coronavirus pandemic and that there is still room to grow.
A break from traditional IPOs, Airbnb will not consider offers for its shares unless investors specify a preferential price and quantity, according to people briefed on the process and a notice sent to potential investors. The process is similar to that used by video game software company Unity in September.
Airbnb plans to use about $ 1.2 billion of the proceeds of the offering to pay taxes and transfer fees on stock awards to employees.
The San Francisco-based accommodation reservation service posted losses of nearly $ 700 million on revenue of $ 2.5 billion in the first nine months of this year, increasing from losses of $ 323 million. dollars at the same time last year. In the second quarter, Airbnb suffered a loss of $ 576 million due to the collapse of the travel industry. However, the company posted a profit of $ 219 million in the third quarter, as summer pushed people, and especially remote workers, to retreat to nearby places outside of urban areas.
On Monday, food delivery company DoorDash also began pitching its IPO to investors, looking for a market cap of up to $ 27 billion. The company would raise more than $ 2.8 billion if it valued its shares at the high end of its expected range.
Investors valued DoorDash at around $ 16 billion in June, with activity surging after a surge in takeout orders during lockdowns, pushing it to a surprise profit in the second quarter. Like Airbnb, DoorDash also plans to price its IPO as part of an auction-like process, people briefed on the offer said.
Airbnb and DoorDash are headlining a busy end-of-year period for new announcements in the United States, with video game platform Roblox and e-commerce site Wish also looking to enter. stock exchange in December.
According to data provider Refinitiv, private issuers have raised nearly $ 70 billion in proceeds in U.S. IPOs this year. That’s the highest number in a year since 2014, when Alibaba set the record for the largest IPO.