PUBLISHED MON, DEC 7 2020 4:59 AM ESTSHAREKEY POINTS
- Airbnb has plans to raise the target price range for its initial public offering to between $56 and $60 per share, underscoring demand for new U.S. stocks.
- The U.S. home rental firm had on Tuesday set a price range for its IPO to sell shares at $44 and $50 apiece.
Filip Radwanski | LightRocket | Getty Images
Airbnb has plans to raise the target price range for its initial public offering (IPO) to between $56 and $60 per share, underscoring demand for new U.S. stocks, Reuters reported and CNBC has confirmed.
The U.S. home rental firm had on Tuesday set a price range for its IPO to sell shares at $44 and $50 apiece.https://d2319277cce01e6a9b5cc8bbeaafe972.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html?n=0
Airbnb could communicate the upwardly revised price range to investors in a public filing on Monday, the source added, requesting anonymity as the plans are private.
At the upper end of the new range, Airbnb would sell $3.1 billion in stock and have a fully diluted valuation, which includes securities such as options and restricted stock units, of $41.8 billion.
This is well above the $18 billion Airbnb was worth in an April private fundraising round in the early weeks of the Covid-19 pandemic in the United States, and above the $31 billion in its last pre-Covid-19 fundraising in 2017.
Airbnb’s stock market debut, slated for Dec. 10 on Nasdaq, will be one of the largest and most anticipated U.S. IPOs of 2020, which has already been a bumper year for flotations.
Record label Warner Music, data analytics firm Palantir Technologies and data warehouse company Snowflake have all gone public in the past few months.https://d2319277cce01e6a9b5cc8bbeaafe972.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html?n=0
Food delivery startup DoorDash on Friday also raised its IPO target price range.
News of the planned IPO price increase was first reported by The Wall Street Journal.