Daily Management Review

Plans Of Upward Revision Of Price Target Range For Its IPO Being Made By Airbnb


Plans Of Upward Revision Of Price Target Range For Its IPO Being Made By Airbnb
The growing demand for new stocks of United States based companies became apparent after reports became public of plans by Airbnb Inc to increase the target price range for its initial public offering (IPO) to between $56 and $60 per share.
Reports quoting sources with knowledge of the matter said that a price range for its IPO to sell shares at $44 and $50 apiece was set last Tuesday by the US based home rental company.
The reports quoting anonymous sources claimed that the upwardly revised price range could be communicated by Airbnb tyo its potential investor through a public filing as early as early this week.
Priced at the upper end of the new raised range, $3.1 billion in stock would be sold by Airbnb and have a fully diluted valuation, which includes securities such as options and restricted stock units, of $41.8 billion.
That will be well over the $18 billion that was the value of Airbnb as calculated in an April private fundraising round during the early weeks of the Cpvid-19 pandemic in the United States. The price was also more than the $31 billion valuation of the company that was reached in its last pre-Covid-19 fundraising in 2017.
Airbnb is slated to go public on Nasdaq on December 10. According to analysts, this listing will also be one of the largest and the most awaited IPOs from an American company for 2020 which has seen a large number of IPOs and floatation so far.
Within just the past few months, companies including the record label Warner Music Group, data analytics company Palantir Technologies and data warehouse company Snowflake Inc have all issued initial public offering and gone public.
Its own IPO price range was also raised on Friday by the food delivery startup DoorDash Inc.
News of the planned IPO price increase was first reported by the Wall Street Journal.