Airbnb Plans To Raise $3B In IPO, With Possible Valuation Of $30B: Report

Vacation rental company Airbnb is looking to raise $3 billion from its prospective initial public offering on the back of a surprisingly quick recovery in its business after the COVID-19 pandemic rocked the travel industry, Reuters reported.

The company confidentially filed for an IPO with U.S. regulators in August and will make the details public only after the presidential elections in November, the report quoted sources as saying.

Airbnb is planning to make its market debut December, although Reuters' sources warned that volatility from the elections, along with changing market conditions, may affect the timing of its plans. The company declined to comment.

Industry experts estimate IPO could value the home rental company at over $30 billion, subject to market conditions. This would be substantially higher than its valuation of $18 billion in April when it raised $2 billion in debt from investors.

San Francisco-based Airbnb’s listing is expected to be one of the biggest and most anticipated this year, following a string of successful IPOs including data company Snowflake (SNOW), record label Warner Music Group (WMB), and big data firm Palantir Technologies (PLTR).

The travel industry faced turbulent times in the wake of COVID-19 and Airbnb wasn't spared either. The company raised emergency funding from its investors earlier this year and laid off 1,900 people, calling the cuts essential for its survival until people started traveling again.

Interestingly, Airbnb bounced back quickly, booking more than 1 million nights in a single day in July for the first time since March 3. The company seems to be benefiting from the fact that people feel more secure staying in homes rather than hotels, analysts said.

The company aims to ride this high from short-range travel during the pandemic to its impending IPO. It was reported in August that billionaire investor William Ackman had offered to take Airbnb public through a reverse merger with his blank-check company, but Airbnb preferred a traditional listing.