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Airbnb looks to raise $3B in December IPO

Home-sharing startup last valued at $18B

Photo illustration of Brian Chesky (Getty, iStock)
Photo illustration of Brian Chesky (Getty, iStock)

Airbnb is looking to raise $3 billion in a December IPO, according to a new report citing a remarkable turnaround for the home-sharing startup.

Airbnb plans to file a prospectus in November after the U.S. presidential election, and will look to make its stock market debut by the end of the year, Reuters reported, citing sources who are familiar with Airbnb’s plans.

Those sources also said Airbnb could hit a $30 billion valuation — nearly double its $18 billion valuation in April, when it secured $2 billion in debt and equity.

Airbnb declined to comment. But if the company pulls off a public offering this year, it will make good on a long-awaited promise to early employees and investors.

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Airbnb filed confidentially to go public in August, just months after travel ground to a halt and the company lost $1 billion in bookings. In May, the company laid off nearly 2,000 employees, saying it expected revenue to drop by more than 50 percent. In 2019, Airbnb reportedly generated $4.8 billion.

In recent months, Airbnb has reported a quicker-than-expected rebound, particularly among travelers who don’t want to stay in hotels. In July, the company said customers booked more than a million stays for the first time since March 3.

Under pressure from early employees to go public, the company is looking to capitalize on a bull market for tech stocks and the frothy IPO market. Shares of Booking Holdings, an online travel agency that some Airbnb investors use to compare their stock, are up 35 percent over the past six months.
[Reuters] — E.B. Solomont

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