The home-sharing platform had filed for an IPO in November. The much-awaited details of the IPO were revealed today by Airbnb when it reported to raise around $2.6 billion in the IPO. The San Francisco-based company revealed in a filing on Tuesday with the U.S Securities and Exchange Commission that it would offer 51.9 million shares at $44 to $50 per share.
Airbnb IPO Valuation
The IPO would value the company at $35 billion on a fully diluted basis at the top of its target range. The amount includes employee stock options and restricted share units. Yet, the hospitality giant’s IPO valuation and price range could vary according to the demand for its shares on roadshows with investors which would occur over the next week or so.
Previously, Airbnb’s highest valuation was at $31 billion as a private company in 2007. The company’s valuation crashed to $18 billion when it raised $2 billion in debt earlier this year to deal with the pandemic.
Date, Underwriters & Categories Of Shares
Airbnb is considering pricing its IPO on December 9 and hopes for its shares to start trading the next day on the Nasdaq Global Select Market under the ticker symbol, “ABNB”. Class B shares will have 20 votes each, giving investors the ability to control the firm through them. On the other hand, Class A shares will have one vote each. The firm is backed by venture capital firm Sequoia, Founders Fund, and DST Global.
Morgan Stanley and Goldman Sachs are the lead underwriters for the IPO whereas Allen & Co., Bank of America, Barclays, and Citigroup are also listed as underwriters.
A Year Rich With IPOs
December will be a busy month for IPOs as multiple companies will be going public. These include DoorDash, Roblox, Affirm Holdings, and ContextLogic. Airbnb’s IPO would be the fourth largest IPO in the U.S this year at $2.6 billion. A massive amount of $152 billion has been raised this year through new listings on the U.S exchanges; half of which was through special purpose acquisition companies (SPACs). Internationally, around $317 billion has been raised which precedes only 2007’s $385 billion.
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