Airbnb Prepares Confidential IPO Filing After Pandemic Delay
Airbnb plans to confidentially file for its initial public offering this month, with shares potentially trading by the end of the year. The home-rental giant resumes its market debut plans after the Covid-19 pandemic forced a major delay and significant cost-cutting measures.
Airbnb submits a confidential filing with the SEC this month to go public, according to a source familiar with the matter. Shares of the short-term rental company begin trading by the end of the year, marking a major turnaround after the Covid-19 pandemic halts its original plans.
The pandemic creates a huge hurdle for the travel and hospitality industries, forcing Airbnb to lay off 25% of its staff, or roughly 1,900 employees. CEO Brian Chesky warns that 2020 revenue is less than half of what the company earns in 2019, prompting the business to raise $2 billion in debt and equity to survive the crisis.
Despite these challenges, the company moves forward with its market debut as its private valuation drops to $18 billion from $31 billion in 2017. Airbnb declines to comment on the confidential IPO process, which the Wall Street Journal initially reports.