Airbnb Inc has priced its long-awaited initial public offering (IPO) above a marketed range to raise about US$3.5 billion, seizing on investor demand for a home-rental business roaring back from a COVID-19 pandemic-fueled slump.
Its IPO came just hours after DoorDash Inc almost doubled from its listing price in its debut trading session, adding to a flurry of consumer-facing Web-based companies going public this month.
Airbnb and its investors sold about 52 million shares on Wednesday for US$68 each after marketing them for US$56 to US$60 apiece, it said in a statement.
Photo courtesy of Perla Requejo, Reuters
At that price, Airbnb has a fully diluted value of about US$47 billion, which includes employee stock options and restricted stock units.
Airbnb’s listing adds to what was already a record year for IPOs, with more than US$163 billion raised on US exchanges, according to data compiled by Bloomberg. That includes DoorDash’s US$3.37 billion offering.
Other companies lined up for IPOs this month include video-game company Roblox Corp, installment loans provider Affirm Holdings Inc and ContextLogic Inc, the parent of online discount retailer Wish Inc.
DoorDash’s first-day surge propelled its valuation, including employee stock options and restricted stock units, to about US$71 billion.
San Francisco-based Airbnb has seen a bounce back in domestic bookings since the early days of the COVID-19 pandemic crushed demand.
In a letter to shareholders, the three cofounders said the 10 months since the pandemic started have been “the most defining period since we started Airbnb.”
In the past 13 years, Airbnb has totally upended the travel market, given people an opportunity for income and created a whole new market for services related to real estate and hosts.
Today, Airbnb is one of the biggest travel companies in the world.
For the first nine months of this year, Airbnb had a net loss of US$697 million on revenue of US$2.5 billion, compared with a net loss of US$323 million on revenue of US$3.7 billion for the same period last year, according to its filings.
Airbnb’s offering is being led by Morgan Stanley and Goldman Sachs Group Inc.
Shares of Airbnb were to begin trading yesterday on the NASDAQ Global Select Market under the symbol ABNB.
UNWANTED ATTENTION: In the past two months, the automaker has made headlines, with a Chinese military ban of its vehicles and a protest at an expo Electric vehicle maker Tesla Inc, facing scrutiny in China over safety and customer service complaints, is boosting its engagement with regulators and beefing up its government relations team, industry sources said. Tesla’s change of strategy leading to more behind-the-scenes interaction with policymakers in Beijing compared with relatively little previously shows the seriousness with which the US automaker views the setbacks in its second-biggest market. TALKING SHOP It also comes at a time when China is trying to regulate large and powerful private companies, especially in the technology sector, on concerns about their market dominance. As they do elsewhere, regulators in China, the world’s biggest
Chinese electric vehicle (EV) start-up Nio Inc (蔚來) reported a narrower first-quarter loss, while warning that a global chip shortage would keep a lid on deliveries. The Shanghai-based company posted a net loss of 451 million yuan (US$68.8 million) in the three months ended March 31, compared with 1.69 billion yuan a year earlier, it said in a statement. It also marked an improvement on the 1.39 billion yuan net loss it posted in the fourth quarter of last year. Revenue rose to 7.98 billion yuan, beating estimates of 7.16 billion yuan. Nio delivered 20,060 vehicles in the quarter, a 423 percent increase from
Dell Technologies Inc has agreed to sell its Boomi cloud business to private equity firms Francisco Partners and TPG in a cash deal valued at US$4 billion, as part of efforts by chief executive officer Michael Dell to trim down the PC maker. The deal is expected to close by the end of this year, the companies said in a statement on Sunday without providing additional details of the terms. Dow Jones had earlier reported that the companies were near a deal. Boomi specializes in integrating different cloud platforms for companies and has more than 15,000 customers. Dell agreed to acquire the company for
Intel Corp wants 8 billion euros (US$9.7 billion) in public subsidies toward building a semiconductor factory in Europe, chief executive officer Pat Gelsinger was cited as saying on Friday, as the region seeks to reduce its reliance on imports amid a shortage of supplies. The pitch is the first time that Gelsinger has publicly put a figure on how much state aid he would want, as Intel campaigns to take on Asian rivals in contract manufacturing. “What we’re asking from both the US and the European governments is to make it competitive for us to do it here, compared to in Asia,”