Airbnb aims to raise about $3 billion in its upcoming initial public offering (IPO)
Home rental company Airbnb aims to raise about $3 billion in its upcoming initial public offering (IPO). People familiar with the matter said on Friday. After the Covid-19 epidemic shook the travel industry and used an unexpectedly sharp recovery in its business.
Airbnb will be one of the largest and most anticipated U.S. stock market lists in 2020. Whereas that it is already a blockbuster year for IPOs. Such as record label Warner Music Group, data analytics firm Palantir Technologies, and data warehouse firm Snowflake.
In August, the U.S. Airbnb said it had secretly filed for an IPO with the regulators.
The company is currently planning to make its filing publicly available in November after the US presidential election and is targeting an IPO anytime in December, sources said.
Requesting anonymity as the plans are private. Since then, San Francisco-based Airbnb has benefited from the fact that travellers are shy away from big hotels and prefer to go on local vacation rent instead.
Sources warned that the time was subject to change and market conditions. Especially due to the instability coming from the elections. An Airbnb spokesman declined to comment.
Sources further warned that the company could achieve a value of more than $30 billion in the IPO. That it would be subject to market conditions.
Airbnb valued at more than $18 billion when it raised $2 billion in debt from investors in April. Airbnb recently’s an independent estimate of the fair market value of its stock. With its value reaching approximately $21 billion.
Going into the public and the increase in its potential valuation underscores Airbnb’s dramatic recovery when it received emergency funding from investors earlier this year and when the outlook for the travel industry was uncertain.
For the first time since March 3rd, customers booked 1 million nights in a single day, the company said in July.
Some Airbnb investors use the U.S. as a traditional public market proxy for its own stock. Shares of online travel agency Booking Holdings Inc. have risen more than 35% in the past six months.
Reuters reported last month that billionaire investor William Akman had approached Airbnb about going public through a reverse merger with his blank-check company, while Airbnb said it was preferring to go public through a traditional IPO.