NEW YORK – Airbnb is seeking to raise some US$2.6 billion (RM10.6 billion) in its upcoming share offering, which could give the home-sharing giant a valuation as high as US$35 billion, an updated regulatory filing showed today.
The California group said its initial public offering would include some 51.9 million shares in a range of US$44 to US$50.
The latest filing appeared to confirm an upbeat outlook for Airbnb, which has claimed its home-sharing model has proved resilient during the global coronavirus pandemic with travellers seeking safer lodgings and avoiding crowded hotels.
Airbnb offered no date for the start of trading, which is expected sometime this month under the trading symbol ABNB.
The company may still update its offering price, but at current levels the valuation would be as much as US$35 billion including restricted stock and options. The IPO would raise between US$2.1 billion and US$2.6 billion at the current range.
The San Francisco-based start-up released details of its finances last month as part of its regulatory filing.
It delivered a US$219 million profit in the three months ending in September, but nonetheless, lost US$697 million in the first nine months of the year amid a 32% revenue drop as the Covid-19 outbreak crushed the travel sector.
Airbnb revenue slipped to US$2.5 billion in the first nine months of 2020 from US$3.7 billion a year earlier. Its losses for the nine-month period were roughly in line with last year's level.
The company has had mostly losing quarters, according to the filing, but has reported profits in the third quarter of each year from 2018.
But Airbnb said its unique business model has proven to be valuable both for hosts and travellers seeking a safe environment during the global health crisis. – AFP, December 1, 2020
