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Airbnb skyrockets to nearly US$100bn public market debut
Airbnb has more than doubled its share price in its first day of trading as the company recorded one of the largest first day rallies in history.
Airbnb skyrockets to nearly US$100bn public market debut
Airbnb has more than doubled its share price in its first day of trading as the company recorded one of the largest first day rallies in history.
The share sale was priced at US$68 a share but the company started trading at over US$150 for a short period before closing the day at US$144.70 per share.
Trading under the ticker “ABNB”, the first-day surge made Airbnb the 10th best debut in 2020 based on price gains from its IPO.
“I don’t know what else to say,” Brian Chesky, Airbnb’s chief executive officer, told the media after hearing about the potential opening day price. “I’m very humbled by it.”
The company is going public at a time when the sector has been hurt by the COVID-19 restrictions in travel with the health crisis whipping out nearly 20 per cent profit last quarter.
However, the company still managed to turn a US$219 million profit.
The drop in listings and a difficult economic environment saw Airbnb let go of 25 per cent of its staff in April.
The strong opening day’s gains had seen the online booking service surpass the market cap of travel giant Expedia.
The rally in share price will see the Airbnb CEO’s personal stock in the company be worth over US$11 billion.
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