U.S. News

Airbnb aims for $35 billion valuation in IPO this month

By Clyde Hughes   |   Dec. 1, 2020 at 1:18 PM
Airbnb said in a filing Tuesday that it expects to be a vital source of "economic empowerment for millions" in the near future. File Photo by Yonhap/EPA-EFE

Dec. 1 (UPI) -- Airbnb said in a federal filing Tuesday it plans to sell about 50 million shares and ultimately raise $2.6 billion for its initial public offering this month.

The property rental and travel hosting company said in the filing it plans to sell each share for between $44 and $50.

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Those shares would give Airbnb, which will list on the Nasdaq as ABNB, a valuation of about $35 billion, according to its filing with the Securities and Exchange Commission.

Acknowledging the impact of the COVID-19 pandemic on its business model, Airbnb says it's positioned to weather economic harm caused by travel restrictions.

"Just as when Airbnb started during the Great Recession of 2008, we believe that people will continue to turn to hosting to earn extra income," Airbnb wrote in its filing.

"In light of the evolving nature of COVID-19 and the uncertainty it has produced around the world, we do not believe it is possible to predict COVID-19's cumulative and ultimate impact on our future business, results of operations, and financial condition."

Airbnb said it expects to be a vital source of "economic empowerment for millions" in the near future.

The company in the filing noted its most recent quarterly earnings as a sign of recovery. Airbnb said it earned revenues of $1.3 billion in the third quarter, of which nearly $220 million was profit.