Shares of Airbnb Inc. have doubled up in their stock market as valuing the home rental firm at just over $100 billion in the biggest U.S. initial public offering (IPO) of 2020. They also capped a plentiful year during which the investors flocked to tech stocks.
On the NASDAQ, Airbnb opened up at $146 far above the IPO price that raised $3.5 billion for the company. The IPO price was at $68 per share and that made the company’s stock hit a high of $165 and closed at $144.71. Airbnb’s business was heavily affected because of the COVID-19 pandemic and in order to get over the loss, the firm made a stunning recovery with the help of IPO culmination.
The ease of lockdown proved as an essentiality
As the lockdown got lenient more travelers opted for booking homes instead of hotels. This untimely demand helped Airbnb to profit during the third quarter. The firm also gained plenty of offers for renting homes away from major cities.
Airbnb Chief Executive Brian Chesky said, “I don’t think this summer too many people expected to see an Airbnb IPO this year.” Chesky, whose Airbnb stake is now worth around $11 billion also, stated that he was planning on making public but putting IPO on hold was the better option.
Airbnb’s listing was one of the most anticipated U.S. IPOs of 2020. This firm was established in 2008 as a website. Airbnb had a market capitalization of $86.5 billion at the start of trading as stated on NASDAQ.
Increase in Airbnb’s valuation!
Airbnb’s fully diluted valuation came to $100.7 billion comprising of the securities, and restricted stock units. This year’s valuation of Airbnb was five times the $18 billion that was raised in April. In its last pre-COVID-19 private fundraising in 2017, the worth of Airbnb was secured at $31 billion.
