The global spread of coronavirus threatens to delay the Airbnb IPO

USA: Airbnb’s IPO plan, one of the most anticipated public auctions in 2020, could be postponed to 2021 due to fears of a global spread of COVID-19 coronavirus. Bloomberg.

The virus has already prompted the company to suspend orders in Beijing, one of Airbnb’s most valuable markets and the epicenter of the virus, and plans to launch an initial public offering [IPO] the process appears to have been suspended indefinitely. It may consider waiting for a more appropriate moment to be made public, perhaps even in 2021.

Wall Street Journal also reported that China’s revenue from the short-term rental business was down 80 percent from a year earlier, and the coronavirus likely led to a sharp drop.

Any IPO will largely depend on Airbnb being able to prove its profitability or profitability potential [before interest, taxes, depreciation and amortisation] but after a year, in the nine months to 2019. in September, it suffered 322 million [after posting a $200 million profit the year before], investors will inevitably worry.

Airbnb spokesman Nick Papas said Bloomberg“While no one knows the impact that a coronavirus outbreak may have, we believe history shows that the travel industry has recovered over time from global disruptions.”

David Hsu, a business professor at the University of Pennsylvania’s Wharton School of Business, told the website: “You want to move up the public list – and the virus has a strong impact on Airbnb.

Recently, Airbnb has sought to promote its healthy image in the face of negative press coverage. She recently announced tax cooperation with Vilnius and pledged to close the party house after the shooting in Orinda, on the outskirts of San Francisco; the latter is a problem that its community has faced with the company’s business model.

Airbnb has also promised its stakeholder community that it will open annual meetings in place of the traditional shareholders’ meeting.

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