Airbnb preps for IPO
Number of shares to be offered and price range have not yet been determined, according to Airbnb
Airbnb has confidentially filed for an IPO Wednesday with the Securities and Exchange Commission, according to a blog post by the company.
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Airbnb said that the number of shares to be offered and the price range for the IPO have not yet been determined.
“The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions,” Airbnb added.
Sources told the Wall Street Journal earlier this month that Morgan Stanley has been tapped to lead the offering with Goldman Sachs Group Inc. also playing a key role. According to the Journal, Airbnb was recently valued at $18 billion, down from an earlier valuation of $31 billion.
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Airbnb announced its long-awaited plans last year to become a publicly listed company in 2020. The move, however, has been delayed as the rental company has been slammed by the coronavirus pandemic.
CEO Brian Chesky said in May that the company's revenue was expected to be less than half of what was brought in last year.
“While we know Airbnb’s business will fully recover, the changes it will undergo are not temporary or short-lived,” Chesky told employees. “Because of this, we need to make more fundamental changes to Airbnb by reducing the size of our workforce around a more focused business strategy.”
As a result, the company has raised $2 billion and “dramatically” cut costs by laying off 1,900 of its 7,500 employees in order to weather the pandemic.