Airbnb (ABNB) - Get Report on Monday boosted the price range of its initial public offering to between $56 and $60 a share, a new range that will net the company more than $3 billion and give it a valuation of as much as $42 billion.
The IPO follows a tumultuous year for Airbnb, which lost $697 million over the first nine months of 2020, with revenue down by almost a third as the pandemic and abrupt halt in business and leisure travel slammed its business.
Airbnb's September quarter revenue was $1.3 billion as travel restrictions eased and users began booking on its platform again. Revenue dropped 18% from last year but was still a notable improvement, as reported in Airbnb’s IPO prospectus.
At the same time it comes amid a hot year for IPOs in general as companies scramble to take advantage of record-low borrowing costs and a hot stock market - as well as a rebound in the broader economy and travel.
More than $140 billion has been raised in IPOs on U.S. exchanges so far this year, well above the previous full-year record set in 1999. Airbnb in September 2019 said it planned to list its shares in 2020, but kept quiet about the plans until more recently.
Airbnb is expected to begin trading on the Nasdaq Stock Exchange on Wednesday under the symbol "ABNB."