The biggest initial public offering (IPO) of 2020 in eth United States saw the share prices of Airbnb Inc more than double in their stock market debut on Thursday which pushed the market value of the home rental company at just over $100 billion.
Airbnb’s IPO also epitomised a year at the US stock markets in which tech stocks remained the greatest attraction for investor by far.
The opening price of Airbnb’s stocks on debut was at $146 on the Nasdaq which was way over the the IPO price of $68 per share, allowing the company to raise a total of $3.5 billion. The stock hit a high of $165 and closed at $144.71.
This stellar debut of Airbnb also is the culmination of a year for the firm in which it staged a stunning recovery after heavy nit to the company’s business earlier in the year because of the novel coronavirus pandemic.
With the easing down of the lockdown imposed all across the world by governments to curb the spread of Covid-19 infections, people decided to travel but choose to book homes and bot hotels which helped Airbnb to make a surprise profit for the third quarter. An increase in interest among people to rent homes away from major cities also benefitted the San Francisco-based startup.
"I don't think this summer too many people expected to see an Airbnb IPO this year," Airbnb Chief Executive Brian Chesky told Reuters the media in an interview.
"We were planning on going public, we put our IPO on hold and this has been the most unbelievable journey. It's been quite a comeback for our hosts and for what I hope will be travel," added Chesky, whose Airbnb stake is now worth around $11 billion.
In 2008, Airbnb was founded as a website that accepted bookings for rooms during conferences. But within a little over a decade the company got publicly listed and its IPO was the most awaited one of the US companies in 2020. This year has been a record year for public listing by companies.
Within just the past few months, companies such as the record label Warner Music Group, the data analytics company Palantir Technologies and the data warehouse firm Snowflake Inc have made their debuts at stock markets.
The market capitalization of Airbnb was at $86.5 billion at the start of trading on the Nasdaq. That was higher than the market capitalization of the online travel agency Booking Holdings Inc and the hotel chain Marriott International Inc.
Airbnb's fully diluted valuation came to $100.7 billion including securities such as options and restricted stock units. That was five times higher than the value the company was given in April at the outset of the pandemic at in a private fundraising round at $18 billion. In in last pre-Covid-19 private fundraising in 2017, the market value of the company was pegged at $31 billion.
The stellar stock market debut of Airbnb was preceded by the doubling of the share price of food delivery company DoorDash Inc just in their first day of public trading.
(Source:www.businessinsider.in)
Airbnb’s IPO also epitomised a year at the US stock markets in which tech stocks remained the greatest attraction for investor by far.
The opening price of Airbnb’s stocks on debut was at $146 on the Nasdaq which was way over the the IPO price of $68 per share, allowing the company to raise a total of $3.5 billion. The stock hit a high of $165 and closed at $144.71.
This stellar debut of Airbnb also is the culmination of a year for the firm in which it staged a stunning recovery after heavy nit to the company’s business earlier in the year because of the novel coronavirus pandemic.
With the easing down of the lockdown imposed all across the world by governments to curb the spread of Covid-19 infections, people decided to travel but choose to book homes and bot hotels which helped Airbnb to make a surprise profit for the third quarter. An increase in interest among people to rent homes away from major cities also benefitted the San Francisco-based startup.
"I don't think this summer too many people expected to see an Airbnb IPO this year," Airbnb Chief Executive Brian Chesky told Reuters the media in an interview.
"We were planning on going public, we put our IPO on hold and this has been the most unbelievable journey. It's been quite a comeback for our hosts and for what I hope will be travel," added Chesky, whose Airbnb stake is now worth around $11 billion.
In 2008, Airbnb was founded as a website that accepted bookings for rooms during conferences. But within a little over a decade the company got publicly listed and its IPO was the most awaited one of the US companies in 2020. This year has been a record year for public listing by companies.
Within just the past few months, companies such as the record label Warner Music Group, the data analytics company Palantir Technologies and the data warehouse firm Snowflake Inc have made their debuts at stock markets.
The market capitalization of Airbnb was at $86.5 billion at the start of trading on the Nasdaq. That was higher than the market capitalization of the online travel agency Booking Holdings Inc and the hotel chain Marriott International Inc.
Airbnb's fully diluted valuation came to $100.7 billion including securities such as options and restricted stock units. That was five times higher than the value the company was given in April at the outset of the pandemic at in a private fundraising round at $18 billion. In in last pre-Covid-19 private fundraising in 2017, the market value of the company was pegged at $31 billion.
The stellar stock market debut of Airbnb was preceded by the doubling of the share price of food delivery company DoorDash Inc just in their first day of public trading.
(Source:www.businessinsider.in)
