Startups Airbnb Inc. and DoorDash Inc. are planning for higher-than-expected valuation ranges for their initial public offerings, the Wall Street Journal reported citing people familiar with the matter.
San Francisco-based home rental platform Airbnb is planning to target a range of around $30 billion to $33 billion when it starts its investor roadshow Tuesday, higher than the $30 billion it had been expected earlier.
On-demand prepared food delivery service DoorDash, meanwhile, plans to target a range of around $25 billion to $28 billion ahead of a roadshow expected to begin Monday, greater than the $25 billion expected earlier.
Both companies are on track to go public in mid-December, and are yet to disclose per share price ranges for the IPOs.
Airbnb, which was originally planning for the IPO in March, confidentially filed papers to go public in August with the Securities and Exchange Commission. In mid-November, it filed a registration statement with the SEC to raise up to $1 billion in IPO of shares of Class A common stock on Nasdaq under the symbol “ABNB.”
Amid the Covid-19 pandemic, Airbnb experienced sharp drop in bookings due to travel restrictions and economic slowdown. The company earlier had said that the pandemic, which badly hit the travel industry, cost it more than $1 billion in cancellations. Airbnb’s net loss for the nine-month ended September 30 widened to $696.87 million from $322.80 million last year, and revenue fell 32% to $2.52 billion.
Meanwhile, DoorDash’s revenue more than tripled in the first nine months with majority of people across the nation are confined to their homes due to the restrictions.
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