Airbnb aims for $35-billion valuation in prolonged-awaited IPO


AIRBNB, INC. said on Tuesday it is aiming for a valuation of up to $34.8 billion in its initial public supplying (IPO), in what would cap a spectacular recovery in its fortunes following the US dwelling rental firm’s organization was closely damaged by the COVID-19 pandemic previously this 12 months.

In a regulatory submitting, Airbnb set a goal price tag selection of amongst $44 and $50 apiece to market 51.9 million shares, which would pull in $2.6 billion. Airbnb could conclude up promoting $2.85 billion at the upper close of the selection.

Of the shares remaining bought, Airbnb founders Brian Chesky, Joe Gebbia, and Nathan Blecharczyk will alongside one another promote practically $100 million value of shares in the IPO launch.

Airbnb struggled in the speedy aftermath of the pandemic as vacation arrived to a grinding halt. It experienced to lay off a quarter of its workforce and seek out $2 billion in crisis funding from buyers, together with non-public equity companies Silver Lake and Sixth Avenue Associates.

But as lockdowns eased, additional vacationers opted to e book homes instead of lodges, helping Airbnb publish a shock financial gain for the third quarter. The San Francisco-primarily based firm also received from amplified desire in renting houses away from key metropolitan areas.

“Looking at Airbnb, there is a whole lot to like. The company’s third quarter has shown they’ve bounced back again much better than a whole lot of their journey rivals,” explained Matthew Kennedy, senior strategist at IPO investigate organization Renaissance Money.

At the top of Airbnb’s concentrate on selection, the IPO will give Airbnb a absolutely diluted valuation, which incorporates securities these as choices and limited stock units, of $34.8 billion. This is approximately double the $18 billion Airbnb was value in an April non-public fundraising round and earlier mentioned the $31 billion in its very last pre-COVID-19 private fundraising in 2017.

Airbnb’s market place capitalization at $50 for every share would full $29.8 billion. Chesky’s stake would be valued at about $3.8 billion, while all those of Gebbia and Blecharczyk would be worth about $3.5 billion every single. Sequoia Capital, which to start with invested in Airbnb in 2009, would have a stake worthy of more than $4 billion.

Airbnb designed its IPO registration general public before this month. Reuters was the initial to report in October that the startup was aiming to raise close to $3 billion in its IPO that could price it at much more than $30 billion.

Airbnb strategies to list on Dec. 10 below the image “ABNB” on Nasdaq.

Airbnb’s stock market debut will be one of the largest and most anticipated US IPOs of 2020, which has currently been a bumper 12 months for flotations. File label Warner Tunes Group , details analytics agency Palantir Technologies and details warehouse firm Snowflake, Inc. have all absent public in the past several months.

Airbnb was introduced by Chesky and Gebbia in 2008 as a website to take bookings for rooms for the duration of conferences, such as the Democratic Nationwide Conference that yr in Denver.

It has considering that expanded listings to include residences, homes and holiday rentals, allowing millions of common home owners to make money by leasing their flats and homes even though on their own holiday seasons.

Airbnb achieved “unicorn” standing in 2011, with detailed qualities in 13,000 towns across much more than 180 nations at the time, soon after being valued at far more than $1 billion in a funding round led by Andreessen Horowitz.

Some of Airbnb’s other buyers contain Hollywood actor Ashton Kutcher, buyout companies Typical Atlantic, TPG, Hillhouse Cash and financial investment administration firms Vanguard Team and Fidelity Investments.

Morgan Stanley and Goldman Sachs are the direct underwriters for the IPO. — Reuters