Airbnb Confidentially Files IPO Paperwork

TOPLINE
Dwelling-sharing large Airbnb has filed confidential paperwork for an preliminary public providing, the corporate introduced Wednesday, paving the best way for a possible public markets debut later this yr.

Airbnb has resumed its efforts to go public this yr, regardless of fallout from the pandemic.

Stefanie Keenan/Getty Photographs

KEY FACTS

The corporate introduced that it had confidentially filed its IPO paperwork with the Securities and Trade Fee on Wednesday.

Airbnb didn’t disclose monetary info or specify what number of shares can be supplied in its IPO, saying that each had been “but to be decided.”

Airbnb had plans to go public earlier this yr, however put an IPO on maintain because the pandemic wreaked havoc on its enterprise, forcing the corporate to put off 25% of its workers—practically 2,000 staff—in Could.

CEO Brian Chesky on the time informed staff that Airbnb’s 2020 income can be lower than half of what the corporate made in 2019.

Airbnb was valued at $18 billion in its newest spherical of fundraising in April, down from an earlier valuation of $31 billion in 2017.

Tangent
Airbnb CEO and co-founder Brian Chesky has a internet price of $three.1 billion, in keeping with Forbes’ estimates.
Key background
Airbnb’s long-awaited IPO would observe within the footsteps of different sharing financial system stalwarts like Uber and Lyft. The San Francisco-based firm is the biggest home-sharing platform within the U.S., posting $four.eight billion in income in 2019. However Airbnb’s enterprise has taken a considerable hit amid the pandemic, which has devastated the journey and hospitality industries as folks had been pressured to remain at dwelling beneath lockdown orders. To get via the disaster, Airbnb raised $1 billion in fairness and debt from Silver Lake and Sixth Avenue Companions again in April, adopted by one other $1 billion from Constancy, T. Rowe Value and Blackrock per week later.
What to look at for
Airbnb is the most recent to hitch a rush of corporations going public amid the inventory market’s rebound from its coronavirus recession low level in March. Whereas IPOs had been at a digital standstill due to the pandemic, extra corporations have been trying to public traders to lift money in current months. Amongst those that have efficiently accomplished so are music label Warner Music Group and insurtech startup Lemonade. U.S.-listed IPOs have to date raised greater than $60 billion in 2020, in keeping with Dealogic, with a median acquire of 23% on their first day of buying and selling.
Additional studying
Airbnb’s Brian Chesky Apologizes For Impression On Cities, Rethinks Future Progress (Forbes)
Airbnb’s Comeback: Longer, Native Stays However A Profit To Greater Cities (Forbes)
How Unhealthy Are Covid-19 Pandemic Results On Airbnb Visitors, Hosts? (Forbes)
Full protection and dwell updates on the Coronavirus

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