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Technology Stocks : Peer-to-Peer, Gig and On-Demand Economies

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To: Rarebird who wrote (812)12/6/2020 11:57:22 PM
From: Glenn Petersen   of 847
 
Airbnb Boosts IPO Price Range to Between $56 and $60 a Share

New price range for home-rental company’s public debut equates to $39 billion to $42 billion, fully diluted

By Maureen Farrell
Wall Street Journal
Updated Dec. 6, 2020 9:00 pm ET



Airbnb co-founder and CEO Brian Chesky at a 2018 event in San Francisco.PHOTO: ERIC RISBERG/ASSOCIATED PRESS
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Airbnb Inc. plans to boost the proposed price range of its initial public offering, the latest sign that the red-hot IPO market is ending the year on a high note.

Airbnb is boosting the range to between $56 and $60 a share, from $44 to $50, people familiar with the matter said. The new range would give the home-rental company a valuation of as much as $42 billion on a fully diluted basis and including proceeds from the offering.

DoorDash Inc., the food-delivery company that is expected to debut Wednesday, the day before Airbnb, plans to price its shares at the high end of or above its range of $90 to $95 a share—already raised from between $75 and $85, people familiar with the offering said. That would give the San Francisco company, the largest among its peers, a valuation of as much as $36 billion or more, on a fully diluted basis and including proceeds from the offering.

Taken together, the developments are the latest sign that the market for new issues, already at a record in terms of money raised in the U.S., is set for a climactic ending to the year. The market has been buoyed by soaring stocks, including those that have recently made their own debuts.

So far this year, more than $140 billion has been raised in initial public offerings on U.S. exchanges, far exceeding the previous full-year record high set at the height of the dot-com boom in 1999, according to Dealogic data that dates back to 1995.

Valuations of both Airbnb and DoorDash have been boosted after roughly a week of investor meetings known as roadshows.

December is typically a quiet time in the IPO market. This year there will instead be a flurry of offerings. In addition to Airbnb and DoorDash, videogame company Roblox Corp. and the parent of online retailer Wish, ContextLogic Inc., are expected to debut before the year is through.

For companies now, including Airbnb and DoorDash, roadshows have been conducted differently than they would have in the pre-Covid-19 world. Executives have been marketing their offerings to mutual funds and hedge funds in Zoom meetings rather than in the typical whirlwind tour across the country.

Both Airbnb and DoorDash and their respective underwriters will set their final IPO prices in the coming days. Morgan Stanley and Goldman Sachs Group Inc. are leading Airbnb’s IPO, while Goldman and JPMorgan Chase & Co. are leading DoorDash’s.

Write to Maureen Farrell at maureen.farrell@wsj.com

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