The company known for its online marketplace for rental homes may be nearing to trade publicly, per the news reports.
Gearing for public
Airbnb could likely be filing for its initial public offering in the near future, according to a report from Wall Street Journal. The San Francisco-based firm could execute their paperwork with the Securities and Exchange Commission, possibly by this month. Before the year finishes, Airbnb could be listed publicly, after being founded in 2008. However, the publication says that a time table could be observed given the current crisis affecting the market.
WSJ also mentioned that multinational investment banks namely Goldman Sachs and Morgan Stanley are backing the offering.
Breaking: Airbnb plans to file to go public by year-end, people familiar with the matter say. The move would mark a surprising rebound for the home-sharing giant. https://t.co/6bFMFv3aZo
— The Wall Street Journal (@WSJ) August 11, 2020
It was also previously reported that they have been planning to push through with the IPO for 2020. However, as noted by CNN, the company could likely challenge those plans.
The chief executive of Airbnb Brian Chesky has previously mentioned to CNN about the possibility of debuting in the stock market which could be pursued this year. He said: “It’s not off the table, but we’re definitely not committing to anything right now. We’re going to keep our options open.”
Air of pandemic
Moreover, Chesky also noted travel patterns last June. He said that customers prefer locations within 200 miles of their own residences. Also, there are only a few vacations as travel restrictions between country borders are imposed.
On top of low volume of demand, even the landlords who managed to rent their properties are also annoyed by missing or delayed payments from the company. A spokesperson for Airbnb has clarified that they found “a small technical issue” and that they are also set to resolve the problem.
Airbnb is expecting to earn only half of what they made in the previous year. In another news report, it was said that the company has lost $1 billion in bookings because of the pandemic. In another, revenue loss for the company since March’s pandemic start was estimated to be $320 billion.
As the company navigates the aftermath of the health crisis, about 25 percent of the workforce have been displaced. It is almost 2,000 jobs lost, mostly who are assigned on new projects. The CEO also intends to give up his wage for half of the year, per WSJ.