Airbnb hits $ 47 billion in above-range IPO
NEW YORK: Airbnb Inc has valued its long-awaited initial public offering (IPO) above a marketed range to raise around US $ 3.5 billion, seizing investor demand for a booming home rental business after a crisis caused by a pandemic.
The company’s IPO came just hours after DoorDash Inc nearly doubled its listing price in its first trading session, adding to a wave of consumer-oriented internet companies that went public. this month.
Airbnb and its investors sold around 52 million shares on Wednesday for $ 68 each after trading them for between $ 56 and $ 60 each, he said in a statement confirming a previous Bloomberg report. At that price, Airbnb has a fully diluted value of approximately US $ 47 billion, which includes employee stock options and restricted stock units.
Airbnb’s listing adds to what was already a record year for IPOs, with more than $ 163 billion raised on U.S. exchanges, according to data compiled by Bloomberg. This includes DoorDash’s US $ 3.37 billion offer.
Other companies lined up for IPOs this month include video game company Roblox Corp, installment loan provider Affirm Holdings Inc, and ContextLogic Inc, the parent company of online discount retailer Wish Inc.
DoorDash’s first-day surge propelled its valuation, including employee stock options and restricted stock units, to around US $ 71 billion.
In order for Airbnb to hang on to a high valuation, it will face a litany of threats, as noted in its IPO prospectus, ranging from an increase in the number of party houses that carry liability risks to an increase in professionally managed properties that lack charm. that made Airbnb rentals famous.
San Francisco-based Airbnb has seen a rebound in domestic bookings since the early days of the coronavirus pandemic which crushed demand.
In a letter to shareholders, the three co-founders said the 10 months since the start of the pandemic had been “the most defining period since the launch of Airbnb.”
Over the past 13 years, Airbnb has totally revolutionized the travel market, given people an income opportunity, and created a whole new market for real estate and guest services. – Bloomberg