Airbnb Prices IPO Above Estimates At $68 Per Share

Airbnb Inc priced its initial public offering at $68 per share on Wednesday, CNBC reported — citing people familiar with the matter.

What Happened: The company's shares are set to begin trading under the symbol "ABNB" on the Nasdaq on Thursday.

Airbnb is now set to raise $3.7 billion in the IPO that values the company at $47 billion.

Earlier this month, the Wall Street Journal reported that Airbnb was targeting a range of $56 to $60 for its IPO that would value the company around $42 billion.

In April, the San Francisco-based vacation rental company was valued at $18 billion when it secured $2 billion in funding. At the time, the company disclosed plans to implement cost-cutting measures which included downsizing 1,900 employees, around one-fourth of its total workforce.

Why Does It Matter: Airbnb’s revenues took a significant hit when people were forced to stay indoors as a part of the lockdown measure. Revenues in the previous quarter were 19% lower compared to the same period one year ago.

According to a filing with the U.S. Securities and Exchange Commission in November, the company booked $2.5 billion in revenue in the first nine months of the year, 32% lower year-over-year. But the $697 million net loss in the current year is almost two times the losses booked during the first nine months of 2019.

DoorDash Inc. DASH raised $3.37 billion, also pricing its IPO above estimates, on Tuesday.

See Also: Gene Munster On What DoorDash, Airbnb IPOs Mean For FAANG Stocks