Airbnb Sets IPO Terms Sending Valuation as High as $35 Billion
Airbnb Inc. on Tuesday said it plans to sell 50 million shares in an initial public offering that could give the home-rental company a valuation of as much as $35 billion.
The San Francisco startup said it expects an offering price of between $44 and $50 a share, adding that a pricing at the $47 midpoint of that range would yield net proceeds of about $2.3 billion, or roughly $2.5 billion if the underwriters exercise an option to buy an additional 3.5 million shares.
Airbnb said current shareholders are selling about 1.9 million shares in the offering, bringing the size of the IPO to 51.9 million shares.
Airbnb said it would have roughly 601.4 million shares outstanding after the IPO, assuming exercise of the overallotment option, for a valuation topping $30 billion at the $50 high end of the expected pricing range. On a fully diluted basis, including stock options, restricted stock units and proceeds from the offering, that figure rises to about $34.8 billion.
On Sunday, The Wall Street Journal reported that Airbnb planned to target a range greater than the $30 billion people close to the offering had expected.