The home rentals company Airbnb has announced the pricing terms for its imminent initial public offering (IPO), showing that it’s seeking to sell 51.9 million shares for between $44 to $50 apiece. The $50 higher-end price implies that Airbnb is seeking to raise up to $2.6 billion from its IPO, whereas the same price would place Airbnb’s fully diluted market value at $35 billion.

As is the case, there’s no guarantee that Airbnb will reach the targeted $50 share price which it’s set, but the company’s IPO has been long anticipated and may draw enough investor sentiment to reach that price or possibly even higher.

A $35 billion valuation is slightly above Airbnb’s peak valuation of $31 billion on the private markets, whereas earlier this year the company raised a round that placed its valuation as low as $18 billion, notably after a Covid-19 pandemic had dwindled its business.

Now, Airbnb has largely recovered from its business slump earlier this year and even turned a profit of $219 million on $1.3 billion in revenue in the third quarter of this year. However, the company’s revenue for the nine months of January to September went down from $3.7 billion in the past year to $2.5 billion this year.

In the nine months ended September, Airbnb posted a net loss of $323 million. The company notably laid off one-fourth of its workforce this May to help curtail costs.

Photo: Airbnb CEO Brian Chesky

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