On Thursday, the exceptional December for IPOs continued on Wall Street with the first Airbnb Inc (ABNB) shares. On its first day of listing, 24 hours after the euphoric debut of DoorDash, whose stock soared 85%, the stock of the personal tourism rental platform soared 113 percent, finishing at $144.71 on the Nasdaq.
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Investors were attracted by the development plan of the Californian company because it ultimately sold approximately 52 million shares at a unit price of $68, while the indicative range, already updated, ranged from $56 million to $60.
Less than 13 years after its inception, Airbnb, which raised approximately $3.5 billion, is now valued on a completely diluted basis on Thursday at about $100 billion, including securities such as options and limited stock units.
The existing owners and managers of Airbnb will maintain control of the company through Class B shares, which will grant 20 voting rights for each share owned, against one vote for each Class A share sold at the time of the market. Airbnb investors with Class B shares include Sequoia and Founders Fund and DST Global, a venture capital company. The stock is listed as under ticker ‘ABNB’ on the Nasdaq.
Although the San Francisco-based company has weathered the relative strength of the U.S. domestic market better than others, it is not resistant to the coronavirus pandemic and its devastating effects on the travel industry. The company saw revenue slump 32 percent to $2.5 billion in the first nine months of the year, while its net loss hit nearly $700 million.
The group had never managed to finish a healthy quarter, long before the current crisis. Adjusted EBITDA and free cash flow are down, the company cautioned in its regulatory filing. The company also warned that this trend could continue, but investors rushed on the stock on Thursday avoiding that alert.
According to data compiled by Bloomberg, Airbnb Inc’s (ABNB) IPO nearly concluded an already record year of Wall Street IPOs with more than $163 billion raised. This historical balance sheet is expected to inflate in the coming days with the forthcoming IPOs of Roblox (video games) and ContextLogic, the parent company of the Wish online trading platform.
