According to Monday’s S1/ A filing, Airbnb raised the range of its IPO price from $44-$50, set last Tuesday, to $56-$60. At the upper end of the range, Airbnb’s proceeds will be $3.1 Billion on a fully diluted basis, valuing the company at $41.8 Billion.
The company was worth $18 Billion in April when it urgently raised $2 Billion in debt in a private round. This boost in valuation in a short period of time may surprise investors for a company which laid off 25% of its workforce and with net income down 19% from last year.
Airbnb’s IPO is seen by some a barometer for the future of the airline and hotel industries which have been severely hit by the pandemic. In the last few weeks pharmaceutical companies have been coming out with positive results, raising optimism. However, it is yet unclear how consumers are going to respond and how long it will take for consumer behavior to normalize.
The hotly anticipated IPO is expected on Thursday, when Airbnb will list in Nasdaq under the ticker symbol “ABNB”