Airbnb, which plans to hold its initial public offering (IPO) Thursday (Dec. 10) — just a day after DoorDash does the same — will increase the range for the initial price to between $56 and $60 a share from a previous range of between $44 and $50 per share, The Wall Street Journal (WSJ) reported.
The new Airbnb price would value Airbnb at $42 billion on a fully diluted basis, WSJ reported.
DoorDash already plans to seek between $90 and $95 per share — up from a previous plan of seeking between $75 and $85 a share. The price would value DoorDash at about $36 billion.
In the case of both companies, WSJ reported, the new likely pricing follows recent roadshows in which investment bankers pitched shares to potential buyers, including managers of mutual funds. WSJ noted that this year’s roadshows largely were conducted on services such as Zoom — a big difference from prior years when the sales events earned their nickname.
WSJ cited demand for the two upcoming offerings as evidence of what the publication called a “red-hot” IPO market, with the two upcoming major offerings coming during what usually is a slow month.
WSJ, citing data from Dealogic, reported that U.S. IPOs have fetched $140 billion this year, up from a prior record that was set at the peak of the dot-com craziness in 1999.
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A major factor in the health of the IPO market is the performance of stock markets overall, and in the U.S., they’ve been soaring.
Morgan Stanley and Goldman Sachs are leading the Airbnb IPO, and Goldman Sachs and J.P. Morgan Chase are leading the DoorDash IPO, WSJ reported.
