Report: Airbnb Aims To Land $3B By Going Public

As it capitalizes on the unforeseen sharp rebound in its business, Airbnb Inc. is seeking to bring in roughly $3 billion in funding through an initial public offering (IPO), Reuters reported, citing unnamed sources.

The homesharing firm’s intention as of now is to have its filing publicly available in November following the election, with an eye toward a public offering in December, the news outlet reported, citing the unnamed sources.

The timing is not set in stone and is subject to the market climate, and the firm could potentially receive a valuation in excess of $30 billion through the offering, Reuters reported, saying the unnamed sources noted that was subject to the market climate.

In April, Airbnb was valued at $18 million at the time it raised $2 billion in loans.

Airbnb will reportedly be among the most awaited and biggest stock market listings in the U.S. this year, which has been a banner year for IPOs as it stands.

The impetus to go to the markets and the expansion in its possible valuation highlights the company’s rebound from earlier in 2020. Then, the forecast for the travel space was unknown and the firm had found emergency funding.

Airbnb has been rewarded as travelers turn to nearby vacation rentals instead of big hotels as of that time.

In July, Airbnb noted that travelers had reserved over 1 million nights in one day for the first time as of March 3.

In August, news surfaced that Airbnb sent in a draft registration statement for an IPO.

The Securities and Exchange Commission submission didn’t have details on the quantity of shares to be offered or the price range, according to news at the time.

In September, news surfaced that Airbnb Inc. had turned down William Ackman’s offer to combine with his newly formed blank-check firm to go public.

Sources told Bloomberg at the time that the firm said instead of joining a special purpose acquisition company (SPAC) or blank-check company it had a preference for traditional IPO.

Talks with Ackman concluded when Airbnb filed privately for an IPO in August, Bloomberg previously reported.