Airbnb IPO: Key Facts
- IPO Date: December 9
- IPO Cap: USD 28B
- Number of Post-IPO Shares: 596.39M
- Shares for IPO: 51.90M
- IPO Size: USD 2.44B
- Starting Price: USD 44 to USD 50 per share
- Target Price: USD 65 per share
- Underwriters: Morgan Stanley and Goldman Sachs
The company estimates its potential market at $3.4T, of which $1.80T accounts for short-term stay or rent.
The core competition includes Booking Holdings (Booking.com, KAYAK, Priceline.com, and Agoda.com), Expedia Group (Expedia, Vrbo, HomeAway , Hotels.com, Orbitz, and Travelocity), Trip.com Group (Ctrip.com, Trip.com, Qunar, Tongcheng-eLong , and SkyScanner), Meituan Dianping, Fliggy (Alibaba) Despegar, MakeMyTrip , Marriott, Hilton , Accor, Wyndham, and InterContinental, among others.
In 2018, Airbnb's increased by 43%, in 2019, 32%, while over the nine months of 2020, the went down by 32% due to the pandemic.
The EBIT margin reached -3% in 2017, 1% in 2018, -10% in 2019, and -19% over the nine months of 2020.
The main reason for the rising spending and lower margin is the development cost growth: 16% of in 2018 compared to 20% in 2019 and 27% over the nine months of 2020; the G&A reached 13% in 2018, 15% in 2019, and 17% in January to September 2020.
The upside potential may reach 30% of the starting price ($50).
The FCFF model projects a net worth estimate of $39.064B, taking into account the conservative values. The target price is at $65 per share, with a 30% yield potential.