The hosting platform was close to bankruptcy due to the pandemic, but now they have made millions in profits on the stock market.
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Last June, Brian Chesky, Airbnb CEOcommented that they had lost almost everything they had built in ten years. The tourism crisis resulting from the COVID-19 pandemic endangered their plans to be listed on the stock exchange. However, the company was able to recover and will offer its shares in Wall streetwhere they expect a value from $ 35 billion.
The next 10th of Decemberthe private accommodation platform is launched 51.9 million shares. Of this amount, 50 million are owned by the company and 1.9 million are being sold by the company’s current shareholders. With Price from $ 44 to $ 50 eachAirbnb could be valued at around $ 35 billion on the Nadaq.
In a presentation Tuesday, Airbnb said it would sell up to $ 2.6 billion worth of shares as part of its IPO. Additionally, they aim to raise around $ 2.85 billion at the high end of the range.
An amazing recovery
Last April, the company’s estimated value was $ 18 billionaccording to data from CNBC. Then came the bans, border closings, and travel restrictions. In the first nine months of 2020 Sales decreased by 32%compared to the same period in 2019.
Airbnb had to cut 25% of the workforce and raise about $ 2 billion in emergency funds for investors, including Silver Lake and Sixth Street Partners.
The group recovered with the summer vacation in the northern hemisphere: from July to September they made $ 219 million. The gradual shift of multiple destinations increased reservations for long weekends. People who wanted to telework from a location other than their usual place of residence also helped a lot.
While the new bans due to the second wave of coronavirus in the world could hurt their efforts, the mere fact that Airbnb can generate quarterly profits is already good news for the listing. In fact, many companies entered the stock market on the argument of their future potential without being profitable, as they were About.
Airbnb was born in San Francisco in 2008 after Brian Chesky and Joe Gebbia struggled to pay the rent. The entrepreneurs found a solution to make money: they rented a room in their home and offered travelers cheaper accommodation. So they developed a concept that changed the way of traveling for the 4 million guests and more than 825 million customers.
While millions of people loved the idea, it worried others too. Some cities saw suspicions that private homes were being converted into some kind of hotel as this would encourage property speculation and hurt traditional hotel incomes.
Now starting December 10th, investors will be able to participate in Airbnb’s success and buy shares that will be traded under the symbol ABNB.