The hosting platform was close to bankruptcy due to the pandemic, but now they have made millionaire profits on the stock ball.
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This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.
Last June, Airbnb CEO Brian Chesky stated that they had lost almost everything they had built in ten years. The tourism crisis resulting from the COVID-19 pandemic jeopardized their plans to be listed on the stock exchange. The company has rallied, however, and will be listing its shares on Wall Street, where they hope to be valued at $ 35,000 million.
On December 10th, the private accommodation platform will launch 51.9 million shares. Of this amount, 50 million are owned by the company and 1.9 million are being sold by the company's current shareholders. Priced at $ 44 to $ 50 each, Airbnb at the Nadaq could be worth about $ 35 billion.
In a presentation Tuesday, Airbnb said it plans to sell up to $ 2.6 billion worth of shares as part of its IPO. Additionally, they aim to raise around $ 2.85 billion at the high end of the range.
An amazing recovery
Last April, the company's estimated value was $ 18 billion, according to CNBC. Then came the bans, border closings, and travel restrictions. In the first nine months of 2020, sales decreased by 32% compared to the same period in the previous year.
Airbnb had to cut 25% of its workforce and raise almost $ 2 billion in emergency funding from investors including Silver Lake and Sixth Street Partners.
The group recovered with the summer vacation in the northern hemisphere: from July to September they made $ 219 million. The gradual shift of multiple destinations increased reservations for long weekends. People who wanted to telework from a location other than their usual home also helped a lot.
While the new bans due to the second wave of coronavirus in the world could hurt their efforts, the mere fact that Airbnb can generate quarterly profits is already good news for the listing. In fact, many companies entered the stock market under the argument of their future potential without being profitable, as was the case with Uber.
Airbnb was born in San Francisco in 2008 after Brian Chesky and Joe Gebbia struggled to pay the rent. The entrepreneurs came up with a solution to make money: they rented a room in their home and offered travelers cheaper accommodation. So they came up with a concept that changed the way they travel for the 4 million guests and more than 825 million customers they have under their belt.
While millions of people loved the idea, it worried others too. Some cities saw suspicions that private homes were being converted into some kind of hotel, as this would encourage property speculation and reduce the income of traditional hotels.
Now starting December 10th, investors can partake in Airbnb's success by purchasing shares that will become aldrán under the symbol ABNB.