Due to market sentiment dropping sharply on positive vaccine news. On top of that, given the news of last month’s election victory for President-elect Joe Biden, it’s a good moment for the company to go public now. The online home rental company Airbnb plans to conduct an Initial Public Offering (IPO) at the end of 2020. Airbnb also plans to provide a price per share of around USD44-USD50.
Airbnb aims for up to $35 billion valuation in IPO
The target of the IPO is that the company will get a splash of funds of USD35 billion. The company aims to raise around $ 2.5 billionn in an initial public offering.
For your information, this will be much higher than the USD18 billion value Airbnb last April when it collected USD2 billion, debt from investors. That is almost half of his peak personal assessment (USD31 billion) from 2017.
Listed on Nasdaq with the ABNB code
The target is to be able to be listed on the Nasdaq with the issuer code ABNB by the end of this month. The Airbnb roadshow, in which it is promoting to investors, will start on Tuesday.
Airbnb released its first proposal last month. The company reported a net profit of USD219 million with revenues of USD1.34 billion in the third quarter of this year. Which means a decrease of about 19% from the previous year. This decline was caused by the Covid-19 pandemic.
But after shedding around 25% of its staff, or roughly 1,900 employees, in May, Airbnb saw its business bounce back rapidly at the end of the year. That’s thanks to a surge in rents in rural areas as people seek safe escapes amid the pandemic. The company was originally expected to go public in the first half of this year, but the crisis changed those plans
Read now: Gain Extra Money in 5 Ways in Singapore