The IPO Rush of 2020

As the year wraps up, it is no longer news that Airbnb (ABNB) is going to be officially listed on the market today – the long awaited IPO of 2020.

Just yesterday, Food delivery app DoorDash (DASH) hit the public market, at a selling price of $102 per share and rallied up to close the trading day at an 86% high of $189.5. Sentiments on the street are that this IPO is the most ridiculous IPO of 2020. Well! Conversation for another day.

So what should we expect from Airbnb today?

As of December 1, Airbnb (ABNB) offered ~52 million shares for sale at $44 and $50 each, but things have rapidly changed over the last 10 days, even though you might find it difficult to believe how quickly things moved. The present offering stands at $68 per share. Analysts expect a pretty decent run once the trading doors open.

One important thing to note is that Airbnb is selling less than 10% of its outstanding shares—most insiders and early investors in Airbnb can’t sell yet—which means that just a small fraction of stock will drive the billions of dollars in value.

DoorDash went public only selling 23 million of 290 million outstanding shares, and the stock raced ahead 85%, valuing the company at roughly $65 billion. We  expect a similar gain for Airbnb.

Previous Post

Analyst Upgrades / Downgrades As Of Thursday, Dec 10, 2020

Next Post

Analyst Upgrades / Downgrades As Of Monday, Dec 14, 2020

Related Posts