Exclusive: Airbnb targets roughly $3 billion raise in IPO – sources

In this news, we discuss the Exclusive: Airbnb targets roughly $3 billion raise in IPO – sources.

(Reuters) – Home rental company Airbnb Inc is aiming to raise around $ 3 billion in its upcoming initial public offering (IPO), people familiar with the matter said on Friday, capitalizing on the unexpected resumption of business after the COVID-19 pandemic has rocked the travel industry.

Airbnb will be one of the biggest and most anticipated U.S. stock quotes of 2020, which has already been a successful year for IPOs, with Warner Music Group label WMG.O, the data analytics company Palantir Technologies PLTR.N and the data warehouse company Snowflake Inc. SNOW.N.

Airbnb said in August it had confidentially filed an IPO with U.S. regulators.

The company’s current plan is to go public in November after the U.S. presidential election and aims for an IPO in December, the sources said, requesting anonymity as the plans are private.

The sources warned that the schedule is subject to change and to market conditions, particularly the volatility that could result from the election.

An Airbnb spokesperson declined to comment.

The company could reach a valuation of more than $ 30 billion on the IPO, the sources added, again warning that this was subject to market conditions.

That would be significantly higher than Airbnb’s $ 18 billion valued in April when it raised $ 2 billion in debt from investors. Airbnb’s most recent independent assessment of the fair market value of its stock put its value at around $ 21 billion.

The willingness to go public and the growth in its valuation potential underscore Airbnb’s dramatic recovery from the start of the year, when it secured emergency funding from investors and the outlook for the The travel industry was uncertain.

Since then, San Francisco-based Airbnb has taken advantage of the fact that travelers avoid large hotels and instead prefer to drive to local vacation rentals.

The company said in July that customers had booked more than a million nights in a single day for the first time since March 3.

Shares of U.S. online travel agency Booking Holdings Inc BKNG.O, which some Airbnb investors use as a conservative public market indicator for its own stocks, have rebounded more than 35% in the past six months.

Reuters reported last month that billionaire investor William Ackman approached Airbnb about a reverse merger with his blank check company, but Airbnb was prioritizing a traditional IPO.

Reporting by Anirban Sen in Bangalore and Joshua Franklin in New York; Edited by Cynthia Osterman

Original © Thomson Reuters

Originally posted 2020-10-04 03:36:10.

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