Airbnb Files Confidentially For IPO

Airbnb's business was hit hard by the COVID-19 pandemic, complicating its public offering.
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Airbnb has submitted paperwork for an IPO, the company announced on its blog today. 

The company filed a draft S-1 to the Securities and Exchange Commission on Wednesday. The IPO is expected to take place after gaining the necessary regulatory approvals, and will be subject to market conditions. 

"The number of shares to be offered and the price range for the proposed offering have not yet been determined," Airbnb wrote. 

The travel marketplace had been expected to go public sometime this year, but the damaging effect of COVID-19 on the travel industry reportedly delayed those plans. 

As the pandemic spread in the spring, and travel restrictions went into effect, Airbnb's bookings dropped by around 40% or more, depending on the market, and CEO Brian Chesky said in a statement in May that the company expected its total revenue to drop by more than half in 2020. 

In response, Airbnb laid off 25% of its roughly 7,500 employees and slashed other expenses, such as investments in non-core businesses. 

Chesky said at the time that Airbnb was refocusing on demand for "options that are closer to home, safer, and more affordable." 

"This crisis has sharpened our focus to get back to our roots, back to the basics, back to what is truly special about Airbnb -- everyday people who host their homes and offer experiences," Chesky added. 

Airbnb bookings began to pick up again during the summer months, with guests booking more than 1 million nights’ worth of future stays on July 8, according to the company.