Airbnb plans to submit documentation for listing on the stock market in the coming weeks, paving the way for its shares to start trading from the fourth quarter, according to people familiar with the matter.
The San Francisco-based company is preparing to confidentially file documents with the U.S. Securities and Exchange Commission for an Initial Public Offering (IPO), said the people, who asked not to be identified as they were private information. The long-awaited measure would represent a quick comeback for the company after the coronavirus pandemic sent the travel industry into a tailspin..
The Wall Street Journal previously reported that Airbnb planned to file the paperwork later this month. The firm declined to comment on the matter. The company’s plans could change as new outbreaks of the disease continue to break out in the United States, the people said.
Airbnb is working with Morgan Stanley and Goldman Sachs on their IPO, according to a person familiar with the matter. Morgan Stanley and Goldman Sachs declined to comment.
Airbnb CEO Brian Chesky had originally wanted to take the initial steps toward a listing in March, but his plans were pushed back by COVID-19. In April, Chesky faced a billion dollars in cancellationshe said in an interview with Bloomberg TV in June. Travel bans and lockdowns caused planned bookings to drop by 90 percent, and Airbnb cut 25 percent of its workforce in a bid to survive. Other travel sites, such as TripAdvisor and Booking, also went into crisis and had to cut thousands of jobs.
But in May Airbnb was already experiencing a rebound.. The number of nights booked in US listings between May 17 and June 3 was higher than during the same period of the previous year, since the City dwellers took advantage of work-from-home policies and escaped apartments for nearby vacation rentals. As of June 17, Airbnb bookings had risen 20 percent year-over-year in the US, according to data from market research firm AirDNA.
Before the pandemic, Airbnb had leaned a non-traditional route to public markets. The company planned to follow in Spotify’s footsteps and go public directly, forgoing raising new money by selling shares and allowing its investors to put their shares on the market without waiting for a blackout period. But the Upheaval caused by the pandemic forced Airbnb to raise $ 2 billion in debt securities and stocks in April to shore up its finances., reducing its valuation to $ 18 billion from $ 31 billion. As a result, the company decided to go the traditional IPO route to raise cash for the business, the people said.