Airbnb Climbs To Nearly $ 100 Billion In Valuation As Shares More Than Doubled During IPO | Airbnb
Airbnb shares more than doubled when the company began listing on the Nasdaq Stock Exchange on Thursday – a price that valued the short-term rental company at nearly $ 100 billion.
The sale of shares came as US stock markets hit record highs and investors demanded new issues. Since the start of the year, more money has been raised from the sale of shares than in 1999, the height of the dotcom boom.
Founded in 2008 after co-founders Joe Gebbia, Brian Chesky, and Nathan Blecharczyk came up with the idea of renting air mattresses in their San Francisco apartments, Airbnb now has over 7 million short-term listings worldwide. and $ 100 billion would be valued twice. the value of Marriott, the largest hotel operator.
The stock sale was priced at $ 68 a share, but the company started trading at over $ 150 a share amid fierce auctions and closed the day at $ 144.70.
“I don’t know what else to say,” Chesky, CEO of Airbnb, said when told about the potential opening price in an interview with Bloomberg Television. “I am very touched by this.”
The company struggled during the first months of the coronavirus pandemic as travel halted. In April, it laid off 25% of its staff – nearly 1,900 employees. But bookings rebounded as people fled cities and others booked rentals within driving distance.
The sale will add billions to the fortunes of its founders and allow staff to sell up to 15% of their shares after listing, instead of waiting for the usual lock-in period, creating more millionaires.
Airbnb has turned the travel market upside down, making it a controversial business. The company has come under fire from locals and local politicians in cities from Barcelona to New Orleans for its impact on local communities. In New Orleans, for example, local residents complained about skyrocketing rents and a lack of housing as investors grabbed properties for short-term rentals.
The number of Airbnbs in New Orleans increased from 1,905 to 6,508 between 2015 and December 2018, according to monitoring site Inside Airbnb. Cities like Kyoto and Berlin have imposed strict new bans and rules on the business to preserve rental options for locals.
Amnesty International on Tuesday called on the company to remove more than 200 rental listings in the illegal Palestinian territories occupied by Israel.
“No company should be involved in human rights abuses and until Airbnb ends its business relationship with Israeli settlements it will be deeply compromised,” said Saleh Higazi, Amnesty International’s deputy director for the Middle East.
But the controversies have done little to dampen investor enthusiasm.
Airbnb said previously he expected to sell stocks between $ 56 and $ 60, but raised the price to $ 68 as investors competed for stocks amid an unprecedented boom in stock sales.
The company is the latest tech company to go public in what has become a record year for initial public offerings (IPOs), as investors enthusiastically grabbed new offerings and stock markets surged.
When food delivery company DoorDash debuted on the stock market on Wednesday, its shares jumped 85%.
More than $ 140 billion has been raised on U.S. exchanges so far this year, breaking the annual record of $ 107 billion set at the height of the dotcom boom in 1999, according to Dealogic data.