Airbnb’s stock market listing has the potential to become one of the largest share sales of this year
American vacation rental company, Airbnb has confidentially filed to go public, a move that it was speculating to go forward with for the past few years. Reportedly, the decision of going public came a bit earlier than planned, especially at a time when Airbnb was said to be prepping for an IPO filing.
Reports even hinted that the company could become a public entity by the end of 2020, making a 3rd quarter or 4th quarter offering a distinct possibility.
According to reliable sources, Airbnb has prepared a comeback from its devastating experience during the COVID-19 lockdowns when the travel market faced heavy losses, with revenues seeing a steep decline. Due to this, Airbnb was forced to lay off roughly 2,000 workers and had to take capital from external institutions to maintain liquidity.
Earlier in 2019, Airbnb had promised that it would file for public listing in 2020, but that promise is anticipated to begin after the middle of the year. Meanwhile, Airbnb has been vocal about different sections of its business becoming operational again.
With this public filing, several analysts predict that the present results of Airbnb are quite good, or else it would’ve delayed its filing. However, people are still curious if Airbnb would use its Q2 numbers to complete the filing, or just update its S-1 filing with the 3rd quarter’s numbers, thereby pushing the filing process and directly going public with more recovery time.
Airbnb has now joined a group of other companies like DoorDash that have privately filed to go public. But the big question still remains, whether Airbnb plans to go public in an IPO or go for a direct listing.