6.6 C
New York
Tuesday, November 24, 2020

How does an AIRBNB IPO look at the time of Covid-19?

As per reports obtained from a report published on August 20th, 2020, Airbnb has gone ahead with filing confidential documents with SEC or U.S Security and Exchange Commission, setting the stage for rolling out an IPO.

Image Source: Wikimedia Commons





It may be stated here that filing confidentially has no link whatsoever with the ongoing pandemic but as per norms and regulations laid out in the 2012 Jobs Act, startups are allowed to keep their initiatives and efforts for rolling out IPOs under wraps.

In the private markets before the Covid-19 disaster, Airbnb was valued at USD$31 billion in 2019. However, with the current scenario, the value of the company is at USD$18 billion.

The major reason for the drop in value by around 42% can be attributed to the adverse effects that the pandemic has on the travel-and-leisure stocks that have suffered a tremendous setback.

To name a few others, stock values for cruise operators backslid by 65% followed by hotel operators plunging by 30%. And not to mention, the airline stocks that have been almost halved. The entire scenario is miserable. And amidst the pandemic, many have been wondering what made Airbnb choose this miserable time for rolling out their IPO.

Image Source: Pexel

Why did Airbnb take the step?

The move is due to a slight “rebound” that has been taking place in the travel industry. According to the company, based in San Francisco, it announced that as many as 1 million nights’ accommodations were booked on a day since March.

It is being anticipated that in the event the IPO moves forward, the filing would be declared when it is time for a listing.

However, despite the move to file IPO, the total number of shares it is likely to sell has not yet been declared. The company will be able to take a decision depending on the condition of the market and how things take a turn. As mentioned above, it will complete the listing towards the end of 2020.

airbnb during covid-19
Image Source: Pexel

Airbnb’s core business was home-rental and after Covid-19 sent the world into lockdown and economic and political frenzy, the company was bound to suspend its activities for over a year.

Kiara Dutta
Kiara Dutta comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

Latest news

Are There Planets Like Earth?

The search for planets like Earth has always been a scientists' area of interest. Most of the alien planet discoveries were made by the...

Racism Deemed As A ‘Public Health Threat’ – AMA

Even as the coronavirus continues to surge in the United States (US), the nation’s largest association of medical practitioners and public health care have...

How Long Till the COVID Vaccine Trials Hit the Market?

The desperation for the Coronavirus Virus The coronavirus, or the Covid-19, to be more specific, for almost a year now, is posing the biggest challenge...

Top 4 Side Effects of Sparkling Water

It is a well-known fact that water is a very essential part of our wellbeing and unarguably the most important part of our diet....

Coronavirus Vaccine Update

China reported the first case of Covid 19 in November 2019 in Wuhan. It was only a matter of time when the seemingly harmful...

USA Coronavirus Vaccine – What is USA planning?

Coronavirus Coronavirus or Covid-19 is the deadliest virus which first formed in Wuhan, a city in China. The virus slowly started to spread in the...

Want Hassle-Free Transactions? Check Out this App

What makes a credit card app great? The idea of a credit card app is to ease out tracking and management of finances. A credit...

Read Also

Apps for Business Growth – A Review

Are you a small business owner? If yes, you know that you have a lot of responsibility on your shoulder. Starting from managing the...

Top 5 Best Small Business Apps

Managing a small business is not an easy feat. You are on your own, multitasking, working hard towards a goal. With a small team,...

Covid-19 California Updates – Is this the biggest jump ever?

The United States witnessed more than 10 million cases on Monday. The most troubling piece of an update is that it is slated to...

How to use YouTube for Business

If you are planning to start a channel on YouTube for Business, you will have to consider a few aspects. These include affordability, planning,...
- Advertisement -


Please enter your comment!
Please enter your name here