Airbnb valued its IPO at $ 68 per share on Wednesday, sold 51.5 million shares for $ 3.5 billion and valued the rental company at $ 47 billion. It’s the biggest IPO of the year.
It was a far higher price than originally set, indicating investor demand for the stock. Airbnb initially set its price range at $ 44 to $ 50 per share and raised it to $ 56 to $ 60 per share on Monday.
The move came when DoorDash, another venture capital-backed startup, gained 86 percent on Wednesday’s first day of trading. The delivery company had valued its offer at $ 102 per share and raised $ 3.4 billion.
Public market investors have sought to support technology companies, especially those that have benefited from the pandemic. Renaissance Capital, which is tracking IPOs, making it the busiest year since 1999, saw more than 200 companies publicly traded that year, valued at more than $ 50 million.
Airbnb plans to trade on the Nasdaq on Thursday under the symbol “ABNB”.
Investor demand for Airbnb stock marks a turnaround for the company. The valuation has been lowered to $ 18 billion and revenue has disappeared due to the slowdown in travel expenses caused by the pandemic. Business began to recover later in the year.