Report: Airbnb Will Proceed With IPO Despite Spike In COVID Cases

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Despite the widespread escalation of COVID-19, Airbnb is moving forward with its initial public offering (IPO) and will register publicly next week, according to a Reuters report on Thursday (Nov. 6) that cited two sources.

Airbnb is aiming to set an IPO price range and list on the New York stock exchange in December, the sources told Reuters. The San Francisco-based home rental platform is also planning an investor roadshow in December, the sources said, adding that market conditions could affect the timing.

The company’s Nasdaq debut is tracking to be the biggest listing of 2020. Airbnb is looking to raise around $3 billion. Its valuation could hit as high as $30 billion.

As of Oct. 27, there have been 343 IPOs on the U.S. stock market this year, an increase of almost 77 percent over the same period last year. 

Co-founded in 2008 by Brian Chesky, Joe Gebbia and Nathan Blecharczyk, Airbnb connects travelers and hosts around the world.

Airbnb recently announced it is starting an endowment fund that will initially be funded with 9.2 million shares. When the fund reaches $1 billion, the company will invest funds back into the host community, supporting education, offering financial resources and more. 

The company’s planned listing will be Nasdaq’s biggest since Facebook’s $16 billion filing in 2012. Airbnb would be the third-biggest overall on the index after Facebook and the $8.68 billion listing of Mondelez International in 2001.

In July, Airbnb said people had reserved over 1 million nights in one day for the first time since the pandemic hit the U.S. in March.

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