Airbnb raises its IPO pricing range with a new valuation target
A filing with the Securities and Exchange Commission reveals that Airbnb has raised his IPO pricing range to between $56 and $60 per share. The company previously targeted a price between $44 and $50 per share. The higher per-share price could allow Airbnb to raise up to $3 billion when it debuts on the Nasdaq later this week.
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Details on Airbnb’s IPO
Airbnb is set to start trading on Thursday using the ticker symbol ABNB. The new price range for Airbnb’s IPO represents a 27% boost on the bottom side and 20% increase on the top side. The home rental firm is planning to sell 50 million shares in its initial public offering. At the high end of the range, Airbnb would raise $3 billion in its IPO.
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The new IPO range assigns a $42 billion valuation to Airbnb at the time of its IPO. The company’s previous valuation was only $18 billion, as assigned in a private capital raise in early April. The $42 billion valuation is also a sizable premium on the $31 billion price tag the company managed during another fundraising round in 2017.
The Wall Street Journal was the first to report Airbnb’s higher IPO pricing.
DoorDash also boosts its IPO pricing range
Another highly anticipated initial public offering, DoorDash, is also set for this week. The food delivery service’s IPO is scheduled for Tuesday, and then its shares will debut on the New York Stock Exchange on Wednesday.
Like Airbnb, DoorDash also raised its per-share price for its offering last week. The company’s new offering price is $90 to $95 per share, while it was previously targeting a price of $75 to $85 per share. DoorDash plans to sell 33 million shares in its public offering.
According to Bloomberg, Airbnb and DoorDash are trying to raise a combined $6.2 billion at the top end of their pricing ranges, putting both of them in the top five IPOs of the year. The two IPOs would help raise December’s IPO volume to a new record high. The previous record is $8.3 billion, which was set in 2001 and 2003. Other initial public offerings this month should bring the total IPO volume up past that record high. Three additional mega-listings will follow DoorDash and Airbnb this month, Bloomberg reports.