Airbnb Hits Wall Street and Expects to Reach a Value of $35 Billion Dollars
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Last June, Brian Chesky, CEO of Airbnb , commented that they had lost almost everything they built in ten years . The tourism crisis resulting from the COVID-19 pandemic jeopardized their plans to list on the stock market . However, the firm managed to recover and will offer its shares on Wall Street , where they hope to reach a value of $35 billion dollars .
On December 10 , the private accommodation platform will put 51.9 million shares on the market. Of these, 50 million are owned by the company and 1.9 million will be sold by the current shareholders of the company. Priced at $44 to $50 each , Airbnb could be worth about $35 billion at the Nadaq.
In a presentation Tuesday, Airbnb said it was looking to sell up to $ 2.6 billion in shares in its initial public offering. Additionally, they aim to raise about $2.85 billion at the upper end of the range.
An amazing recovery
Last April, the estimated value of the company was $ 18 billion , according to data from CNBC. Then came the lockdowns, border closures, and travel restrictions. In the first nine months of 2020, its turnover fell 32% , compared to the same period in 2019.
Airbnb had to cut 25% of staff and raise close to $ 2 billion in emergency funding from investors, including Silver Lake and Sixth Street Partners.
The group bounced back with the Northern Hemisphere summer vacation: from July to September they earned $ 219 million. The gradual displacement of several destinations increased reservations for long weekends. People who wanted to telecommute from anywhere other than their usual place of residence also helped a lot.
While the new lockdowns due to the second wave of coronavirus in the world could affect their efforts, the mere fact that Airbnb can make quarterly profits is already good news for its listing. In fact, many companies entered the stock market without being profitable, under the argument of their future potential, as was the case with Uber.
Airbnb was born in 2008 in San Francisco, after Brian Chesky and Joe Gebbia struggled to pay the rent. The entrepreneurs found a solution to earn money: they would rent a room in their home while offering cheaper accommodation to travelers. Thus, they created a concept that changed the way of traveling for the 4 million guests and more than 825 million clients that they have under their belt.
While millions of people loved the idea, it also distressed others. Some cities viewed with suspicion that private houses were transformed into a kind of hotels, because that would favor real estate speculation and affect the income of traditional hotels.
Now, investors will be able to participate in Airbnb's success starting on December 10 by acquiring shares that will aldrán under the symbol ABNB.