Airbnb IPO Price Range: $67-$68

According to reports from the Wall Street Journal, Airbnb is anticipated to set its initial public offering price at $67 or $68 per share. The prominent American lodging company recently increased its IPO price goal, moving from a previous range of $44 to $50, then to $56 to $60.

Although the final pricing is still pending, Airbnb’s value reaches $41 billion at the IPO price, based on the higher end of the estimated range and the company’s 602,448,251 share count as detailed in its latest S-1/A filing. This valuation could increase considerably if over 50 million additional shares are included, potentially arising from the exercising of employee stock options. The company’s total valuation, accounting for all potential shares, is estimated at $47 billion at the IPO price.

Axios indicates that Airbnb secured $3.5 billion at its fully diluted valuation.

No matter the valuation method used, the company’s worth has significantly increased since its lowest point earlier in the year at $18 billion. Following substantial disruption to its operations caused by the COVID-19 pandemic, Airbnb reduced its workforce and obtained outside investment.

Since the conclusion of the first quarter and the initial months of the second quarter, Airbnb has experienced a recovery, enabling it to submit its IPO filing and achieve its highest valuation yet.

The company’s pricing follows similar moves by DoorDash and C3.ai, both of which priced their IPOs above their projected ranges and witnessed substantial increases in their share prices during initial trading. A degree of optimism in the market was therefore anticipated.

Airbnb will begin trading tomorrow morning. Further updates will be provided.