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Airbnb Boosts IPO Price Target, Sees $42 Billion Valuation

Airbnb will look to raise just over $3 billion in its Wednesday IPO that could value the home rental platform at around $42 billion.

Airbnb Inc. boosted the price target of its planned IPO Monday with a range that could value the holiday rental platform at around $42 billion.

Airbnb said in an amended Securities and Exchange Commission filing that it will price its listing on the Nasdaq at between $56.00 and $60.00 per share, up $10 from the higher end of its previous estimate. The group will sell 51.6 million shares, up from its prior plan of around 51.9 million, and raise around $3.1 billion. 

Shares are expected to price on Wednesday December 9, with formal trading set to begin the following day under the ticker symbol ABNB.

Airbnb said it lost $697 million over the first nine months of this year, with revenues down 32.4% to $2.5 billion as it slashed staff and took out $2 billion in term loans last spring as the first wave of the pandemic took hold.

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September quarter revenues, however, jumped to $1.3 billion, still down 18% from last year but a notable improvement as travel restrictions eased amid the summer holiday season.

Last week, another of the trio of IPOs slated to begin trading before the end of the year was also improved as DoorDash, which is backed by Japan's SoftBank Group, raised its price target to  between $90 and $95 per share, compared to its earlier estimate of between $75 and $85 per share, with an eye to a market value of around $36 billion.

DoorDash said in an amended S-1 filing Securities and Exchange Commission that it will price 33 million Class A shares, which will be listed on the New York Stock Exchange under ticker symbol DASH.