Airbnb finally releases its per-share price on Wall Street. This comes weeks ahead of one of the most awaited IPO for the year,
The firm announced a $68 share price for its stocks, which will trade on the Nasdaq exchange under the code “ABNB.”
Such an announcement came to the price of many as it is higher than the recently released pricing range, which stood at only $56 to $60 per share.
Consequently, this is significantly beyond the initial pricing expectation of $44 to $50 per share.
The move is likely to raise $3.5 billion in additional funds for the firm. These funds will be leveraged to expand its rental listings capabilities, focusing on improving service and technology.
This will push its market valuation to $47.3 billion, coming a long way since its start as a unicorn startup.
During the early onset of the pandemic, the company’s worldwide operations were severely incapacitated due to record-low bookings.
This is due to the successive mobility restrictions and containment mechanisms employed by governments to stop the spread of Covid-19. All of this gave way to the fall of travel and tourism.
Due to this, the company resorted to the aid of investors to keep its business afloat.
Back in April, it raised $1 billion from private entities in its last round of funding, which put its valuation to $17 billion.
However, this is still below its 2017 market value, which is at $31 billion.
Due to increased investor confidence amid the unexpected profitability report in the previous quarter, the company regained confidence to push through its IPO.
This will come at a time when US stock markets are at a record high due to the rising risk sentiment among investors.
Growth on Rental Listings and Beyond
Airbnb’s public debut is one of the most-anticipated for 2020, along with DoorDash and other firms.
On the other hand, some traders are still deciding whether the per-share price will be worth the investment as it is exceeding the market’s expectations.
According to an industry expert, the firm’s stocks are worth the buy as the rental listings are likely to make a sharp rebound next year.
Spectators are projecting a robust demand for the platform next year. This is due to the likely rally in travel and tourism now that the vaccine is in place.
The start of the bullish trend is likely to begin in March and will go on through the long-term.
Despite the persisting health crisis, the company made $1.34 billion in revenue last quarter. This indicates upbeat support from the consumer market even with the pandemic.
