Airbnb Pop After IPO? + Price Target To Buy ABNB Stock…
Airbnb shares rise to $ 68 per share in IPO
Airbnb Inc said it sold the shares in its initial public offering at $ 68 apiece, with plans to raise about $ 3.5 billion..
Airbnb intends to sell about 51 million shares at a price of $ 56 to $ 60 per share, increasing that range from its previous target of $ 44 to $ 50.
This placement is the largest for a US operating company in 2020, which has become very active for listings. As a reminder, DoorDash and Snowflake went public in 2020.
The stock offer also marks a dramatic comeback for Airbnb after it weathered a sharp drop in bookings and an increase in cancellations as the coronavirus forced governments to impose travel bans and set social distancing rules..
In April, the company raised $ 1 billion from private equity firms Silver Lake and Sixth Street Partners in an effort to boost its cash reserves amid declining revenue. After fundraising, Airbnb was valued at $ 18 billion, below its $ 26 billion estimate in early March when the pandemic began, a source told Reuters..
Airbnb Confirms Pricing of IPO at $68 a Share
The booking service also launched a series of cost-cutting measures, including suspension of hiring and marketing activities, and executive pay cuts to save up to $ 800 million this year..
But as blockages ease and more travelers are choosing to book homes over hotels, Airbnb’s revenue rebounded from a summer slump, reaching $ 1.34 billion in the third quarter.. The company also posted an unexpected profit of $ 219.3 million, slightly less than last year’s $ 266.7 million..
Airbnb was founded in 2008 Brian Chesky and Joe Gebbia as a site for booking rooms during conferences, including the Democratic National Convention in Denver that same year. Some of Airbnb’s investors include venture capital firms Sequoia Capital and Andreessen Horowitz, General Atlantic, TPG, Hillhouse Capital, and Vanguard Group and Fidelity Investments..
The company’s shares are scheduled to begin trading on the Nasdaq exchange on Thursday under the ticker «ABNB».
Morgan Stanley and Goldman Sachs are the lead underwriters of Airbnb’s offering.