The price for AirBnB Inc’s initial public offering is above a marketed range and aims to raise around $3.5 billion, as company value reaches $47 billion.
Interest from investors has been reignited as home rental business demand has rapidly bounced back from the massive slump caused by the pandemic. The AirBnb IPO arrived just hours following DoorDash Inc. almost doubling from its listing price in its debut trading season. There has been a barrage of customer-facing web-based companies going public already in December 2020, causing a mad dash from investors.
AirBnB Sold 52 million Shares on Wednesday
On Wednesday (9 Dec) AirBnb and its investors sold a whopping 52 million shares at $68 apiece, after having initially marketing them between $56-$60 each. Having sold shares at that price, AirBnB’s fully diluted value is now around the $47 million mark, including employee stock options and restricted stock units. All of the above information was confirmed in a statement from AirBnB that was initially reported by Bloomberg. DoorDash surpassed this, however, as its first day surge shot tis value upto around $ 71 billion including employee stock options and restricted stock units.
According to Bloomberg data, 2020 has already been a record year for IPOs, as more than $163 billion has been raised on US exchanges. These figures exclude AirBnB’s recent listing, but includes DoorDash Inc’s $3.37 billion offering. Several other companies are lined up for IPOs this month, including video-game company Roblox Corp., installment loans provider Affirm Holdings Inc. and ContextLogic Inc.
AirBnB face battle to hang onto high value
If AirBnB is to cling onto its high evaluation, it will need to address threats that have come as a result of a number of issues. These include party houses that carry a certain liability risk, as well as the rise in professionally run properties – which many feel go against the initial homely charm that caused AirBnB’s initial success.