Airbnb has filed paperwork for an Initial Public Offering with the U.S Securities and Exchange Commission (SEC). An initial public offering for the company will follow after the SEC completes the review process, and depending on market conditions.
“Today, Airbnb confidentially submitted a draft Registration Statement on Form S-1 to the Securities and Exchange Commission (the “SEC”) relating to the proposed initial public offering of its common stock,” read an Airbnb statement.
Previously, executives of the company had considered a direct listing, which would allow its existing investors to sell their stock to the public rather than creating new shares.
The number of shares and the price range for the public offering a yet to be determined.
Airbnb’s year on year revenues fell by 67% to $335 million in the quarter ending June 30th compared to a similar period last year as the pandemic reduced non-essential travel. The company cut its staff base by nearly 25%, sending home 1,900 employees. Further, the company was recently valued down to $18 billion from $31 billion in 2017.
Nevertheless, the company is slowly recovering from the pandemic as bookings rise. Bloomberg reports that June’s booking declined 30% YoY compared to a 70% decline in May.
Airbnb CEO Brian Chesky believes that the company will show more signs of recovery, given the resilience of the travel industry, evident in the rising numbers of travellers in the United States.
If the company receives a green light from the SEC and makes its public market debut before the end of 2020, it will join Warner Music Corp and Lemonade, who went public despite the uncertain economy.
Morgan Stanley will lead the offering, with the involvement of Goldman Sachs.
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