Airbnb announced that it has filed documents to begin its Initial Public Offering (IPO). The company has, however, not yet announced specifics like the share price and the number of shares on offer.
The company confidentially filed for the IPO, but it announced the submission to the Securities and Exchange Commission (SEC). 2020’s COVID-19 pandemic has seriously affected Airbnb’s business.
The lack of travel and shelter in place guidelines have resulted in hundreds of millions of dollars in refunds and cancellations on the company’s platform.
The Wall Street Journal values the company at $18 billion, which is about half of its peak value of $31 billion in 2017. However, with the restrictions being lifted worldwide, Airbnb will be looking to rebound.
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Airbnb IPO is one of the most anticipated stock listings post COVID-19 lockdown. CEO, Brian Chesky had initially intended to initiate the listing with the SEC on 31st March 2020.
However, that was put on hold because COVID-19 happened and locked down its entire industry. The impact of the pandemic resulted in $1 billion in cancellations for Airbnb.
Airbnb’s revenue fell to $335 million in the second quarter of 2020. That was a loss of 67% from the more $1 billion revenue the company reported for the same quarter of 2019.
Airbnb says that the IPO will happen only after the SEC completes its review. As part of the process, the company will have to reveal details of its business like business risks, debt holdings, and any outstanding legal threats to its operations.
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