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 home rental business returning from a crisis caused by the COVID-19 pandemic.
Its IPO came just hours after DoorDash Inc nearly doubled its listing price in its first trading session, adding to a flurry of consumer-oriented web companies that went public this month. -this.
Airbnb and its investors sold around 52 million shares on Wednesday for $ 68 each after trading them for between $ 56 and $ 60 each, it said in a statement.
Photo courtesy of Perla Requejo, Reuters
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 comes on top of 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 $ 3.37 billion offer.
Other companies awaiting 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 day one hike propelled its valuation, including employee stock options and restricted stock units, to around $ 71 billion.
San Francisco-based Airbnb has seen a rebound in domestic bookings since the early days of the COVID-19 pandemic which crushed demand.
In a letter to shareholders, the three co-founders said the 10 months since the start of the pandemic have been “the most defining period since we launched 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.
Today, Airbnb is one of the largest travel agencies in the world.
For the first nine months of this year, Airbnb recorded a net loss of US $ 697 million on revenue of US $ 2.5 billion, compared to a net loss of US $ 323 million on revenue of 3.7 billion US dollars for the same period last year, according to its deposits.
Airbnb’s offering is led by Morgan Stanley and Goldman Sachs Group Inc.
Airbnb shares were due to start trading yesterday on the NASDAQ Global Select Market under the symbol ABNB.
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