Airbnb Inc. boosted the price range of its initial public offering, pushing its potential valuation to as much as $42 billion.
The San Francisco-based company will now offer its shares for $56 to $60 apiece, up from a previous price range of $44 to $50 each, according to a filing Monday. That would increase the amount Airbnb is expected to raise to as much as $3.1 billion, and push its fully diluted valuation to $42 billion from $35 billion at the top of the earlier range.
Increasing the price range usually indicates high demand from investors and a well-received roadshow. Airbnb can still price its shares up to 20% higher than the top end of the revised range without having to reapply with the Securities and Exchange Commission.
Airbnb’s IPO is part of a year-end rush for of consumer-facing technology listings as their public market plans were deterred by market and economic volatility earlier in the year. Positive coronavirus vaccine news and a better understanding of its impact have led investors to become more receptive toward companies that haven’t necessarily benefited from this year’s turmoil, dealmakers have said.
The home-rental company, which has seen a bounce back in domestic bookings since the early days of the pandemic crushed demand, plans to offer 50 million shares, with existing shareholders selling an additional 1.6 million shares.
The offering previously comprised 51.9 million shares, with existing investors planning to sell 1.9 million shares. Airbnb is expected to price its offering on Wednesday and begin trading the following day.
Morgan Stanley and Goldman Sachs Group Inc. are leading the IPO. Airbnb plans to trade on the Nasdaq Global Select Market under the symbol ABNB.
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