Airbnb Looks to Raise $2.5 Billion

Airbnb revealed this Tuesday it aims to raise as much as $2.5 billion in its long-awaited IPO (Initial Public Offering), which will probably happen before Christmas.

Airbnb also said this Tuesday that it would have the so-called “greenshoe” option to sell an extra 5 million shares, generating an additional $250 million at the maximum range, raising in total $2.75 billion. 

The home-rental company set the price range of its float between $44 and $50 per share (55 million shares in total). At the top of it, Airbnb’s valuation would be $34.8 billion, almost double what the startup was valued in April.

By that time, with its business hit hard by the pandemic, its value was reduced to $18 billion from $31 billion in its last pre-COVID private fundraising in 2017.

Airbnb filed the documents for its IPO a couple of weeks ago, which is expected to be one of the year’s hottest and largest IPOs.

The company will be listed on Nasdaq under the ticker ABNB.

A Hot Year for IPOs

The meal delivery company DoorDash revealed Monday that it’s looking to raise up to $2.8 billion in its IPO this month. 

Setting the prices for its shares between $75 and $85, it can reach a valuation of $32 billion. Its last private valuation was $16 billion in June.

The leading food delivery app will list its shares on the New York Stock Exchange under the symbol DASH.

Read more about Airbnb’s financial information and the risks to consider here.

Airbnb and DoorDash are part of a busy end-of-year period of IPOs in the U.S. market. The video gaming platform Roblox and e-commerce site Wish are also looking to debut in the stock market now in December. 

In the U.S., corporate issuers have raised almost $70 billion this year, according to the data provider Refinitiv. 

The number is the highest since 2014, when Alibaba set the record for the largest IPO in history, raising $25 billion.

Saudi Aramco is the current holder of the title of the largest IPO ever. The Middle Eastern oil company raised $29 billion one year ago,  in December 2019.