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Checking in: Home-sharing startup Airbnb files for an estimated $3 billion IPO

November 16, 2020
ABNB

Airbnb, which provides a platform for booking short-term stays from a global network of locals, filed on Monday with the SEC to raise up to $1.0 billion in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $3.0 billion.

Airbnb's network consists of more than 4 million hosts in more than 220 countries and regions around the world. In 2019, 54 million active bookers worldwide booked 327 million nights and experiences on its platform, and since its founding, there have been over 825 million guest arrivals on Airbnb. The company's business declined significantly in early 2020 due to disruptions caused by COVID-19, but it states that its business model started to rebound within two months as domestic travel picked up on its platform. Monthly bookings have yet to reach pre-shutdown levels.

The San Francisco, CA-based company was founded in 2008 and booked $3.6 billion in revenue for the 12 months ended September 30, 2020. It plans to list on the Nasdaq under the symbol ABNB. Airbnb filed confidentially on August 19, 2020. Morgan Stanley, Goldman Sachs, Allen & Company, BofA Securities, Barclays, Citi, BNP Paribas, Mizuho Securities, Credit Suisse, Deutsche Bank, Jefferies and Wells Fargo Securities are the joint bookrunners on the deal. No pricing terms were disclosed.