Airbnb Submits IPO Documents... Plans to Go Public Within the Year Despite COVID-19 Impact

Recent Increase in Global Reservations
Largest IPO of the Year Expected at Listing

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Airbnb, a lodging sharing company hit hard by the novel coronavirus disease (COVID-19) pandemic, has proceeded with its initial public offering (IPO) as planned.

According to the Wall Street Journal (WSJ) on the 19th (local time), Airbnb secretly submitted documents for its IPO to the U.S. Securities and Exchange Commission (SEC) on the same day.

WSJ described this as "a surprising turnaround for a company whose business was devastated by the COVID-19 pandemic."

The number of shares to be issued and the price range for the offering have not yet been decided. Airbnb stated that the timing of the IPO will also be determined after the SEC completes its review and considering market conditions.

WSJ, citing sources familiar with the matter, reported that Airbnb is leaning towards listing on the Nasdaq, which is centered on technology stocks.

Initially, Airbnb's corporate value was estimated at $31 billion (approximately 37 trillion KRW), but due to the sharp decline in travel demand caused by the COVID-19 pandemic, its value has dropped to around $18 billion (approximately 21 trillion KRW). Because of this, there were concerns that the listing might be postponed beyond this year.

However, with the recent increase in bookings, momentum for the IPO has picked up again. As of the 8th, Airbnb's global bookings exceeded 1 million. This is the first time bookings have surpassed 1 million since March.

Airbnb's listing is expected to be the largest IPO of the year.

This content was produced with the assistance of AI translation services.