Airbnb files for IPO
Despite the negative impact of the coronavirus pandemic on its business, the room-rental platform Airbnb is pushing ahead with its initial public offering. The San Francisco-based company filed its registration statement with the Securities and Exchange Commission (SEC) on Monday after the market closed on Wall Street, and also released its latest financial results.
According to the report, revenue in January-September 2020 fell by almost a third year-on-year to $2.52 billion. At $697 million, the net loss was more than double that of the same months last year. The company said the pandemic could continue to hurt revenue going forward.
Effects of the pandemic
According to insiders, Airbnb is looking to raise $3 billion in its expected December IPO and hopes to achieve a company valuation of more than $30 billion. Airbnb has had to virtually reinvent itself in the Corona crisis, shifting from subletting private apartments in major cities to vacation rentals. Like the hotel industry, the online portal is suffering from tighter restrictions in the pandemic.
In the spring, Airbnb cut back on marketing and laid off about a quarter of its workforce. To get through the crisis, the company received a $2 billion capital injection in April from investors including Silver Lake and Sixth Street Partners. In the process, Airbnb was valued at $18 billion. Before the outbreak of the pandemic in America, the valuation had been significantly higher at 26 billion. (SDA)
