Airbnb Inc. had to put its plans for an initial public offering on hold in the spring because of COVID-19, but after a bounceback from customers tired of sheltering in the same place for months, it is aiming to raise as much as $3 billion in an IPO by the end of the year.
Since its founding, the company has raised $6.4 billion, according to Crunchbase. In an updated filing with the SEC on Dec. 7, Airbnb said the expected pricing range of its IPO had increased to between $56 and $60 a share from between $44 and $50 a share, which would give it a valuation of up to $35.85 billion.
Still, the company is feeling the overall effect of the pandemic. In the nine months ended Sept. 30, the company’s revenue fell 32% from the year-ago period, to $2.5 billion. Its gross booking value — the dollar value of bookings — was $18 billion in the first nine months of this year, down 39% from last year, when it eventually reported $38 billion in annual gross bookings.
COVID-19 cases are on the rise again in the U.S. and elsewhere, and so are various restrictions on businesses and travel, underscoring Airbnb’s repeated warnings of the risks the pandemic poses to its business. Airbnb’s post-pandemic bounce was also better than some of its competitors’. For example, the company’s third-quarter year-over-year revenue decline was 32%, compared with drops of 58% for Expedia and 48% for Booking Holdings Inc. BKNG, +0.49%.
The plan is similar to what’s in place for Tesla Inc. TSLA, +4.68% CEO Elon Musk, who has begun to cash in as the electric-car company’s stock has hit certain milestones and is now the world’s third richest person.
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