Airbnb, which provides a platform for booking short-term stays from a global network of locals, announced terms for its IPO on Tuesday.
The San Francisco, CA-based company plans to raise $2.4 billion by offering 51.9 million shares (96% primary) at a price range of $44 to $50. At the midpoint of the proposed range, Airbnb would command a fully diluted market value of $32.3 billion.
Airbnb's network consists of more than 4 million hosts in more than 220 countries and regions around the world. In 2019, 54 million active bookers worldwide booked 327 million nights and experiences on its platform, and since its founding, there have been over 825 million guest arrivals on Airbnb. The company's business declined significantly in early 2020 due to disruptions caused by COVID-19, but it states that its business model started to rebound within two months as domestic travel picked up on its platform. Monthly bookings have yet to reach pre-shutdown levels.
Airbnb was founded in 2008 and booked $3.6 billion in revenue for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol ABNB. Morgan Stanley, Goldman Sachs, Allen & Company, BofA Securities, Barclays, Citi, BNP Paribas, Mizuho Securities, Credit Suisse, Deutsche Bank, Jefferies and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of December 7, 2020.
