Airbnb hikes its IPO pricing range and targets a $42 billion valuation
- Airbnb raised the pricing range for its initial public offering to $56 to $60 per share, a Securities and Exchange Commission filing showed.
- The home-rental platform was previously targeting a range of $44 to $50 a share.
- The increased range means Airbnb could raise as much as $3 billion during its stock-market debut on Thursday.
- DoorDash and Airbnb are aiming to raise over $3 billion this month, which would put them among the biggest IPOs of 2020.
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Airbnb increased the price range for its initial public offering this week to $56 to $60 per share, according to a Securities and Exchange Commission filing released Monday.
It previously planned to sell shares for $44 to $50 each, meaning its new range represents a 27% increase at the bottom end and a 20% increase at the top end.
The US-based home-rental company intends to sell 50 million shares via its public offering scheduled for Thursday. At the top end of the new range, it would raise up to $3 billion. That would set it up for a fully diluted valuation of $42 billion, which includes securities like options and restricted stock units.
Airbnb will list on the Nasdaq under the ticker symbol ABNB.
The targeted valuation is more than double Airbnb's most recent private valuation of $18 billion in the early weeks of the pandemic in April. It's also a significant premium to the $31 billion price tag it secured during a fundraising round in 2017.
Plans for Airbnb's new pricing range were first reported by The Wall Street Journal.
The food-delivery firm DoorDash also upped its IPO pricing range last week. The San Francisco-based company plans to sell 33 million shares at $90 to $95 per share, up from a target of $75 to $85 per share.
DoorDash's IPO is set for Tuesday, with its trading debut on the New York Stock Exchange the next day.
The two startups aim to raise a combined $6.2 billion at the top end of their pricing ranges. This would help bring December's IPO volume to a record, exceeding the $8.3 billion record set in both 2001 and 2003, Bloomberg reported.