Airbnb is preparing for a confidential IPO.
Reuters reports that Airbnb plans to go public in December. And the company plans to raise $3 billion from investors.
Go here for my urgent Airbnb Pre-IPO Briefing.
Airbnb filed a confidential prospectus with the SEC in August. And that means the details of the Airbnb IPO filing are sealed and off limits.
The company expects to release its filings to the public in November. Sources say that Airbnb plans to raise $3 billion in exchange for a 10% equity stake.
The Airbnb IPO transaction would value Airbnb at $31 billion.
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Here’s what we know . . .
Airbnb is a thriving Silicon Valley success story. Prior to the pandemic the company was valued at $31 billion.
The coronavirus temporarily plagued Airbnb’s business. Most of the U.S. was under lockdown. Travel was restricted. And everyone stayed home.
In April, Airbnb rushed to raise $1 billion from investors. The deal valued the company at $18 billion – a 42% drop.
Yet Airbnb bounced back quickly.
America and other countries began re-opening in May and June. Lots of folks elected to take vacations close to home. And many chose to rent homes rather than stay in large hotels or resorts.
That’s been good news for Airbnb.
The company is the world’s leading platform for home sharing. Airbnb connects people who have homes and apartments with those looking to rent space – typically on a short-term basis.
The company has over 7 million listings in over 100,000 cities worldwide. And 2 million people sleep at an Airbnb on a typical night.
The business is bouncing back from the pandemic. And that’s setting the stage for an Airbnb IPO (go here for my urgent briefing).
Airbnb IPO: The Biggest IPO of 2020?
Snowflake (NYSE: SNOW) was the biggest IPO of 2020.
Snowflake launched its IPO on Sept. 15 with a $42 billion valuation. And the company raised $3.3 billion from investors.
It looks like the Airbnb IPO will be the second biggest U.S. IPO for 2020 – based upon current expectations.
However, it’s also possible that the deal size and valuation could rise as the company prepares to IPO.
For example, Snowflake originally planned to IPO with a price of $75 – $85 per share. Yet that range was increased to $100 – $110 per share due to high demand.
When the company began its IPO, the final share price was $120 – a full 50% above the original range.
It’s quite possible that we’ll see the same thing with the Airbnb IPO.
Right now, early investors are jumping into private companies like Airbnb. And they’re grabbing a stake BEFORE these companies go public.
Go here to discover how to claim your Pre-IPO shares today.
Yours in Wealth,