Airbnb plans to hike its IPO price and could target a $42 billion valuation, report says

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  • Airbnb is raising the pricing range for its initial public offering to between $56 and $60 per share, the Wall Street Journal reported.
  • The home-rental platform was previously targeting a range of $44 to $50 a share.
  • The increased range means Airbnb could raise as much as $3 billion during its stock-market debut on December 10.
  • Both DoorDash and Airbnb are aiming to raise over $3 billion this month, putting them among the biggest IPOs of 2020. 
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Airbnb intends to increase the price range for its initial public offering this week to between $56 and $60 per share, according to the Wall Street Journal

It previously planned to sell shares for $44 to $50 each, meaning its new range represents a 27% increase at the bottom end and a 20% increase at the top end. The US-based home-rental company could inform investors of its updated pricing range in a public filing Monday.

Airbnb intends to sell 50 million shares via its public offering scheduled for December 10. At the top end of the new range, it would raise up to $3 billion. That would set it up for a fully diluted valuation of $42 billion, which includes securities like options and restricted stock units. 

Airbnb will list on the Nasdaq under the ticker symbol “ABNB.”

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The targeted valuation is more than double Airbnb’s most recent private valuation of $18 billion in the early weeks of the pandemic in April. It’s also a significant premium to the $31 billion price tag it secured during a fundraising round in 2017.

Food delivery firm DoorDash also upped its IPO pricing range last week. The San Francisco-based company plans to sell 33 million shares at between $90 and $95 per share, up from a prior target of between $75 and $85 per share.

DoorDash’s IPO is slated for December 8 while its trading debut on the NYSE is set to follow the next day.

The two startups aim to raise a combined $6.2 billion at the top end of their pricing ranges. This would mark a record high for December’s IPO volume, exceeding the $8.3 billion record set in both December 2001 and 2003, according to data compiled by Bloomberg.

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