Airbnb sold 52 million shares Wednesday for $68, as it prepares to start trading Thursday, Bloomberg reports.
Why It Matters: What a year it’s been for Airbnb considering its entire business was thrown into chaos by the Covid-19 pandemic. Instead, the company has overcome the challenges at hand by capitalizing on local travel, and now, it’s pressing forward with its public offering. Airbnb raised roughly $3.5 billion Wednesday, selling shares $8 higher than the marketed range of $56 to $60 each. At that price, Airbnb has a fully diluted value of $47 billion.
And so continues the record year for IPOs, with Airbnb coming hours after DoorDash.
- In a preview of how Thursday might go for Airbnb, DoorDash’s day one surge skyrocketed its valuation to roughly $71 billion. Airbnb has the chance to eclipse the food delivery company with only a little more than a 51% increase when shares become available.
Some Other Details:
- Airbnb has become one of the world’s biggest travel companies after completely upending the market over the last 13 years.
- The pandemic nixed earlier IPO plans as room bookings plunged 72% by April, as well as the company subsequently handing out more than $1 billion in cancellation fees.
- But while international travel faltered, “short-distance trips and stays outside of the top 20 cities was proving resilient.” Airbnb’s revenue only declined by 18% in Q3 compared to nearly 60% for Expedia and Marriott.
- Based on EBITDA, Q3 2020 was Airbnb’s most profitable yet.
Final Word: Look out for the newly minted Airbnb stock Thursday under the ticker “ABNB.”
Watch my 14 minute video for all you need to know about Airbnb’s IPO today!