"Airbnb IPO Price Set at $68, Exceeding Target... Company Valued at $47 Billion"

Scheduled to be listed on the New York Stock Exchange on the 10th... DoorDash rises 86% on first day of trading

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Airbnb, a shared accommodation company preparing for an initial public offering (IPO) on the New York Stock Exchange, has set its offering price at $68 per share (approximately 73,800 KRW), higher than expected, the Wall Street Journal (WSJ) reported on the 9th (local time), citing sources.

Airbnb will be listed on the New York Stock Exchange on the 10th. Initially, Airbnb set its target offering price range at $44 to $50 per share, but during the roadshow, considering the high investor interest in the IPO, it raised the range to $56 to $60 per share on the 6th. Despite this, the IPO hype continued, leading to a further increase in the valuation.

As a result, Airbnb's corporate value will increase from the previously estimated $42 billion to $47 billion. Airbnb suffered significant revenue losses this year due to the COVID-19 pandemic. However, expectations have grown that travel demand will revive with vaccine development and other factors. Additionally, through restructuring, the company recorded a profit in the third quarter.

There is an IPO boom in the U.S. stock market. Before Airbnb's IPO, DoorDash, a U.S. food delivery company that started trading for the first time on the same day, saw its stock price surge 86% on the first day alone. The opening price was $182, and the closing price was $189.51, which was 85.79% higher than the offering price of $102. WSJ stated, "Both Airbnb and DoorDash are breaking existing records in the IPO market, fueled by the recent rise in tech stocks," and evaluated that "Airbnb's IPO will be an important milestone as the company enters a recovery phase during a historically turbulent year."

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