Airbnb's investors are pushing its bankers to get the market to accept a premium valuation — one that is higher than its $31 billion valuation in 2019, and the $18 billion mark at the height of the pandemic. But the question lingers: After the big public market payoff, then what? Is it sustainable?
Airbnb Inc said on Tuesday it is looking to sell up to $2.6 billion in stock in its planned initial public offering, which could value the home rental firm at as much as $34.8 billion in the last blockbuster U.S. IPO of the year.
The company set a target price range to sell 51.9 million shares at between $44 and $50 apiece, it said in a regulatory filing. Including the option shares, Airbnb is aiming to raise about $2.85 billion at the upper end of the range.
At the top of its target range, the IPO would give Airbnb a fully diluted valuation, which includes securities such as options and restricted stock units, of $34.8 billion, nearly double the $18 billion Airbnb was worth in an April private fundraising round.
Airbnb’s market capitalization at $50 per share would total $30 billion.
Airbnb, which plans to list on the Nasdaq under the symbol ABNB, made its IPO registration public earlier this month and showed that it turned a profit in the third quarter despite the COVID-19 pandemic.
Reuters was the first to report in October that Airbnb was aiming to raise around $3 billion in its IPO that could value it at more than $30 billion.
Morgan Stanley and Goldman Sachs are the lead underwriters for the IPO.
(Reporting by Anirban Sen and Noor Zainab Hussain in Bengaluru and Joshua Franklin and Chibuike Oguh in New York; Editing by Saumyadeb Chakrabarty)
Photo credit: Airbnb CEO Brian Chesky on CNBC June 22, 2020. Airbnb set the range for its listing price. CNBC