• General
  • December 1, 2020
  • 3 minutes read

Airbnb Seeks Up To $2.6B From IPO

The home rentals company Airbnb has announced the pricing terms for its imminent initial public offering (IPO), showing that it’s…

Airbnb CEO Brian Chesky


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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