Airbnb values ​​shares at $ 68 ahead of Thursday’s IPO

Thirteen years after its founders first rented air mattresses in their San Francisco apartment, Airbnb is making its long-awaited debut on the stock market.

The colocation company valued its shares at $ 68 apiece on Wednesday night, giving it an aggregate value of $ 47 billion, according to a person with knowledge of the transaction who was not allowed to speak because the amount did not. had not yet been made public. Starting Thursday, the shares will be traded on the Nasdaq Stock Exchange under the symbol “ABNB”.

Airbnb raised $ 3.7 billion in the offering, making it the largest IPO in the United States this year, according to Renaissance Capital, which tracks IPOs.

Airbnb initially set a price range of $ 44 to $ 50 for its shares, but raised it to a range of $ 56 to $ 60 earlier this week, indicating growing investor demand.

Airbnb’s listing comes a day after another San Francisco-based company, DoorDash, skyrocketed thanks to its initial public offering. Its stock jumped 85.8% to close at $ 189.51 after the company valued the shares at $ 102 each, raising $ 3.4 billion with its offer. Like DoorDash, Airbnb has never recorded an annual profit.

Patrick Corrigan, a University of Notre Dame law professor specializing in IPOs, said investor reaction to DoorDash bodes well for Airbnb.

The company, which has 7.4 million listings, wants to add more hosts and properties and expand into markets like India, China and Latin America.

Airbnb had originally scheduled its IPO for the spring, but put it on hold when the pandemic ended travel around the world.

The company’s revenue fell 32% to $ 2.5 billion in the first nine months of this year as the coronavirus forced travelers to cancel their plans. But in the months that followed, Airbnb’s business rebounded faster than hotels, with many people feeling safer booking private homes outside of crowded city centers.

Airbnb said the number of nights and experiences booked, which fell 72% in April from levels a year ago, fell 20% in September.

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