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Airbnb is going to raising about $3 billion via the IPO and looks to increase its valuation to about $30 billion.
American vacation rental online marketplace company Airbnb Inc is set to make an official filing for its proposed Initial Public Offering (IPO) in the United States. According to a Reuters report, the revelation was made by two sources familiar with the matter and will usher in a public listing entry for Airbnb amidst the uncertainties that surrounds the presidential elections as well as the continuing rise of the COVID-19 pandemic.
COVID-19 which is also known as the coronavirus though came unfavorable to many businesses including those in the travels, tours, and hoteling businesses around the world, it surely contributed to expedite the decision of Airbnb to make the proposed IPO debut at this time. With the coming of COVID-19 and the ensuing lockdowns, the continuous stay in big cities amid killing rent and other real estate costs became largely unattractive to the majority of the working-class Americans, who then sought alternatives.
Airbnb after the difficulties faced in adjusting to the pandemic eventually became the easy goto place for such low budget real estate offers. The San Francisco-based firm reportedly recorded about 1 million new customer bookings for its rental spaces in one night back in July. Reuters noted that the Airbnb IPO will reflect the company’s ingenuity in reshaping its rental offerings to holiday home rentals as the majority of its customers around the world looks to avoid the most endemic areas.
The firm raised about $1 billion back in April, funds which it injected into its three major products including hosts, long-term stays, and Airbnb experiences. The push for its forthcoming IPO will help Airbnb to pull the needed resources to back the company’s “ongoing work to invest over the long term in its community of hosts who share their homes and experiences, as well as the work to serve all stakeholders in the Airbnb community.”
Airbnb to Trail Other Company’s IPO Success Stories
The year has been filled with unprecedented realities and tickers to make the feeble-minded give up on his dreams. The reported move by Airbnb to forge ahead with its IPO plans is set to model after the likes of Palantir Technologies Inc (NYSE: PLTR), and Snowflake Inc (NYSE: SNOW) amongst others who made their public debut this year.
Per the reports, Airbnb is going to raising about $3 billion via the IPO and looks to increase its valuation to about $30 billion. While the COVID-19 pandemic has caused a dramatic shift in how people live, the demand for affordable homes keeps rising and the prospects of the Airbnb markets looks brights seeing that the ongoing second wave of the coronavirus is already prompting new restrictions including lockdowns in some parts of Europe including England, Germany, and France where Airbnb also has an extensive operational base.