Here’s what you need to know before the company starts trading
One of the most expected and long touted IPOs of this year could finally happen in a couple of weeks. According to the SEC documents, Airbnb filed for a $1 billion initial public offering, which is to take place in December. However, this proposed maximum aggregate offering price is commonly used as a placeholder and might not reflect the final value.
Airbnb has quickly gained investors’ attention, having Silver Lake, Sequoia Capital and Sixth Street as main backers, helping it raise roughly $6.4 billion. Its fame made the market cap reach $31 billion in 2017.
In the past quarter, Airbnb reported a net income of $219 million, on revenues of $1.34 billion. Compared to last year’s figures, Airbnb is short on net income and revenues. The decline is caused by the coronavirus pandemic, which made traveling and leisure more difficult this year. However, it managed to rebound quickly, as rentals in rural areas have been highly in demand.
“In early 2020, as Covid-19 disrupted travel across the world, Airbnb’s business declined significantly. But within two months, our business model started to rebound even with limited international travel, demonstrating its resilience,” read the company’s statement.
As mentioned before, Airbnb is looking to going public in December on the Nasdaq under the ticker symbol ABNB. Morgan Stanley and Goldman Sachs will act as main underwriters, with Bank of America, Citigroup and Wells Fargo amongst co-underwriters.
CAPEX.com keeps you updated with the latest market events! Stay tuned for more!
Sources: sec.gov, cnbc.com, axios.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.