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Airbnb seeks to raise $2.6 billion in its mid-December IPO, giving it a valuation of up to $35 billion

Dec 1, 2020, 21:33 IST
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  • Airbnb plans to raise $2.6 billion in its mid-December IPO, giving it a valuation of up to $35 billion.
  • The company plans to list about 50 million shares at between $44 and $50 per share, a regulatory filing showed.
  • Airbnb will list on the NASDAQ under the symbol "ABNB."
  • It was previously eyeing a $30 billion valuation, with $3 billion in proceeds.
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Airbnb is seeking to raise $2.6 billion in its December IPO, giving it a valuation of up to $35 billion on a fully diluted basis, the company said in a filing with the Securities and Exchange Commission on Tuesday.

The home rental company plans to list about 50 million shares at between $44 to $50 per share, according to the filing. It was previously aiming for a $30 billion valuation.

Airbnb will list on the NASDAQ under the ticker symbol "ABNB." The company's investor roadshow is scheduled to begin Tuesday and its IPO for later this month.

The company posted a third-quarter profit of nearly $220 million on $1.3 billion in revenue, up from a second-quarter net loss of $575.6 million on $334.8 million in revenue as the company's bookings recovered slightly after the pandemic devastated its home rental business.

Read More: Buy these 10 stocks set to soar and smash Wall Street's expectations in the recovery from COVID-19, RBC says

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Its profitable third quarter came in the midst of severe cost-cutting measures. For the first nine months of the year, Airbnb posted a drop of 32% in revenue to $2.5 billion, from $3.7 billion in the same period last year. Losses grew to $696.9 million from $322.8 million in this period.

Meanwhile, DoorDash plans to raise $2.8 billion in the other most anticipated IPO this month. That would give the food delivery service a valuation of $32 billion. The company said its offering will be priced at between $75 to $85 per share. DoorDash will trade on the NYSE under the ticker symbol "DASH."

Read More: Cheap stocks just had their best month ever. A Wall Street expert breaks down why their outperformance is bound to continue over the next 4 to 5 years — and listed 2 bargain stocks to buy to capitalize on the trend.

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