Airbnb to increase initial public offering price

WASHINGTON (AFP) – Home-sharing giant Airbnb, which is scheduled to go public this week, will significantly raise its initial public offering (IPO) price, valuing the group at more than USD40 billion, the Wall Street Journal reported on Sunday.

The group is expected to announce a price range of between USD56 and USD60 a share, up from USD44 to USD50, the paper said.

Airbnb did not respond when contacted on Sunday for comment.

The vacation rental platform, which has managed to turn the tide after a few difficult months at the start of the coronavirus pandemic, said its initial public offering would include 51.9 million shares.

The group will go public on Thursday and will be listed on the Nasdaq stock exchange platform under the symbol “ABNB.”

The logo of the online lodging service Airbnb displayed on a tablet. PHOTO: AFP

At the increased price, the champion of the gig economy could reach a stock market valuation of USD42 billion.

In a testament to Wall Street’s appetite for IPOs for new unicorns, meal delivery service DoorDash will make its debut on the market one day before Airbnb.

The startup, propelled by business restrictions due to the virus, also raised its IPO unit price range to between USD90 and USD95 per share on Friday, versus USD75 to USD85 previously.

The meal delivery company will now be aiming for a valuation of more than USD30 billion.

Wall Street has set new records in the past two weeks, with the Dow Jones and Nasdaq closing on Friday at all-time highs.