Airbnb Looking to raise $2.5B in IPO

1 December, 2020 2 min read

Estimating an offering price of $44-50

AirBNB IPO is Coming Up Soon

Airbnb is hoping to raise $2.6 billion in its December IPO, which would give it a valuation of $35 billion, the company said in a filing with the Securities and Exchange Commission on Tuesday.

Airbnb on Tuesday revealed the planned share price for its IPO, which amounts to an offer of 50 million shares at $44 to $50 per share. The IPO news starts dating back in November, when Airbnb filed the required paperwork for its initial public offering. It proved that it’s been profitable in several quarters over the last couple of years, even after the negative impacts from the coronavirus pandemic.

The company posted profit of nearly $220 million on $1.3 billion in revenue in Q3, which is up from a net loss of $575.6 million on $334.8 million in revenue in Q2. The changes in profit/loss are a result in a healthier pulse from increased travel, which was heavily suppressed due to the pandemic.

Thinking of Investing?

Investors have been eyeing AirBNB as a tasty opportunity that could yield amazing profits for years to come… however, it is not without its challenges. Investors are worried about how – or if – swiftly the global travel industry can recover from the coronavirus pandemic.

More on that here.

Airbnb is the latest private company that has earned the nickname “unicorn”, since it is currently valued at more than $1 billion. Other unicorns include ride-hailing companies Uber and Lyft went public in 2019, and food delivery service DoorDash – which plans to offer its IPO later this month. 

Airbnb will trade on the Nasdaq under the symbol ABNB and is expected to start later this month. It has been hailed as the most anticipated IPO of the year.

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