Airbnb “Challenges” the Coronavirus Emergency

Despite being hit hard by Covid, the Californian Unicorn would be thinking about an IPO by applying to the SEC as early as August, although it is not clear how.

For the Unicorns of the sharing economy, such as Airbnb, but also Uber and Lyft, the explosion of the pandemic from Covid was certainly not an advantage, unlike other American big techs such as Facebook, Apple, Amazon, Microsoft, Google and Netflix. as it directly impacted the business based on mobility and tourism. But surprisingly, the global platform for short-term rentals would instead be thinking of launching a public offer for the landing on the stock exchange by August, according to rumors circulating in the American media.

Before the virus, the IPO was widely expected for 2020, but the pandemic has hit hard, forcing the home-sharing giant to cut 25% of the workforce and halve revenue expectations compared to 2019. Now the possible surprise move, which would indicate a strong rebound on the way and that would boost the American IPO market. According to rumors, two big names in US finance, Morgan Stanley and Goldman Sachs, were contacted by the San Francisco unicorn to take care of the ‘case’.

A request to the SEC by August would pave the way for an IPO by 2020, which could however have different modalities: ranging from the traditional IPO with the offer of new securities in capital increase, to the direct listing that does not require capital requests to the market , until the merger with an empty but already quoted box, practically a Spac. Airbnb’s most recent valuation is around $ 18 billion, well below the over $ 31 billion at the beginning of the year. Since it was founded in 2008, Airbnb has stayed away from the stock market, preferring direct financing to support growth without worrying too much about running out of money.

Chief Executive Brian Chesky had already contacted the SEC about a possible IPO in March, but the raid on the Covid scene had messed up everything. If the operation is confirmed, it would send a double signal: the expectation of a much faster restart of global mobility than expected and a further boost to the IPO market which in America is already doing very well, with over 60 billion dollars. collected since early 2020, at the highest since the Internet boom in 2000, supported precisely by expectations of a V-shaped rebound after the virus-induced recession.

Reviewer overview

Airbnb "Challenges" the Coronavirus Emergency - /10

Summary

Despite being hit hard by Covid, the Californian Unicorn would be thinking about an IPO by applying to the SEC as early as August, although it is not clear how.

0 Bad!