Airbnb, DoorDash And Billionaire Tom Siebel’s C3.ai Are Upsizing Their Public Market Debuts, Revving Up Biggest December For IPOs Ever

Topline

Enterprise software company C3.ai on Monday morning became the latest tech firm planning an initial public offering this week to boost its expected price target, joining Airbnb and DoorDash as investors continue to pour into technology ahead of the busiest December for public-market debuts ever.

Key Facts

The Redwood City, California-based firm, founded by billionaire tech investor Thomas Siebel in 2009, said it expects to price shares between $36 and $38, boosting the amount it could raise to $589 million from initial plans to raise $525 million.

The public-market debut, slated for Wednesday, could now value the firm at up to $3.7 billion, roughly 12% more than C3’s last private valuation of nearly $3.3 billion in September 2019.

Airbnb is now planning to offer its shares for from $56 to $60 each when it goes public on Thursday, the firm said on Monday, up from the previously planned range of $44 to $50.

The home-rental startup is looking to raise $3.1 billion at a valuation that could top $42 billion.

DoorDash, meanwhile, said it could raise as much as $3.1 billion on Wednesday, the firm said Friday when it up-sized its planned offering, which could value the firm at $35 billion.

What To Watch For

Three other big-tech IPOs are on deck for this month, though specific dates have yet to be lined up. Gaming platform Roblox, fintech startup Affirm and discount e-commerce platform Wish have said they’re looking to raise $1 billion, $100 million and $1.1 billion, respectively.

Big Number

$9 billion. That’s roughly how much the six offerings thus far announced for this month are on track to raise, the most for a December ever since $8.3 billion was raised in 2001 and 2003, according to Bloomberg data.

Key Background

Momentum stocks, and particularly those in tech, have dominated the pandemic’s bull market since the steep market correction in March, and the IPO market for software companies, in particular, has been explosive, with Snowflake, Asana and Palantir all going public since September. However, the tide has turned in the weeks since the U.S. election, as vaccine optimism and the prospects of a favorable regulatory environment in Washington brighten the outlook for value stocks, moving investors away from tech stocks and into financials, energy and leisure. The tech-heavy Nasdaq has underperformed the S&P 500 since President-elect Biden was declared the election’s winner.

Surprising Fact

Despite lackluster growth in recent weeks, the Nasdaq is still up an eye-popping 37% this year, compared to 13% for the S&P 500.

Further Reading

Airbnb, DoorDash Boost Price Ranges Ahead of Mega Week for IPOs (Bloomberg)

Palantir’s Stock Surge Is Hype, Morgan Stanley Warns In Downgrade, Shares Plummet 12% (Forbes)

DoorDash IPO Could Make CEO Tony Xu And Cofounders Billionaires (Forbes)

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