The Stock Exchange NASDAQ Is Being Planned By The Company To Trade On
On Tuesday, Airbnb a rental marketplace that operates online announced for its IPO—a planned share price. 50 million shares are being planned by the rental company to be sold at 44 dollars to 50 dollars per share. This has been made official by the filling given by the US SEC (Security and Exchange Commission). The company is seeking to raise up to 2.5 billion dollars when it comes to the IPO (Initial Public Offering), which is reported to give the company a 35-billion-dollar valuation.
Airbnb had to file paperwork in the month of November to raise 2.5 billion dollars, showcasing that the company has been raking in profits for the last few years. Like every other business, Airbnb also has been affected by the COVID-19 pandemic, due to the virus people have been quarantined in their homes and no one is allowed or encouraged to put their rooms, apartments, houses on rent on Airbnb. Due to the virus, people have cut their traveling plans, and are following rules imposed by governments to safeguard people from passing the virus to more people.
Airbnb filed for IPO (Initial Public Offering) to raise 2.5 billion dollars, filling for IPO can help a business get many benefits such as getting more investment. When it comes to debt and equity, it will also give Airbnb a lower cost of capital. Airbnb will be able to go public with IPO, it will help them to get easy funding to stay afloat in the COVID-19 pandemic. Another reason Airbnb is filling for IPO is that it wants to handle the market pressure in the pandemic and it has finally decided to build an image of credibility and publicity for its potential customers by going public.