Airbnb plans to present an IPO in August, according to a Wall Street Journal report. This means that we can see a list sometime this year, although the exact timeline will depend on the Security and Exchange Commission review process and what the market looks like. for Journal, the company has eavesdropped on Morgan Stanley to lead the bids, with Goldman Sachs “playing a leading role”.
The news comes at a time when Airbnb is facing high costs and additional hurdles due to COVID-19. The home-sharing giant lost hundreds of millions after the pandemic trip to earth to stop and caused bookings to be booked in cities around the world. The company had to issue millions in refunds to the hosts, whose guests canceled their stays.
Airbnb was valued at $ 18 billion back in April – a significant drop from the $ 31 billion price it earned during the final round of fundraising in 2017. The company raised $ 1 billion in funding during its April round, with a price slope including a 10 per cent interest rate and (reportedly) a verbal commitment to reduce fixed costs and strengthen management. (Still, the additional funding could help the company fix the pandemic.) In May, the company laid off a quarter of its employees and pumped the brakes on plans to expand to TV and transportation.
Even before COVID-19 hit the US, things did not look good. Airbnb amassed a loss of $ 322 million in the first nine months of 2019.
Airbnb is back somewhat, though: bookings have started to rise year after year.
Reservations are more inclined towards places within 200 miles of customers’ homes, indicating that customers have shifted vacations to domestic stays (unexpected, given worldwide travel restrictions) and prefer car travel during flights.
Airbnb declined to comment on the story.