Home rental major Airbnb plans to make stock market debut in 2020

Airbnb . Photo: Reuters

Home rental giant Airbnb said it plans to list its shares in 2020, making it one of the most high-profile names to tap the stock market next year.

In a short statement posted on its website on Thursday, Airbnb did not give any details on how it plans to list its shares, although it is widely expected to take a direct-listing route.

A direct listing to go public is a process in which no new shares are created and helps companies save millions of dollars in underwriting fees.

This year has marked the stock market debuts of several high-profile companies, including Uber and Lyft Inc, but their shares have fared poorly after the launch, amid investor skepticism over their path to profitability.

WeWork owner The We Company has also delayed its initial public offering, walking away from preparations to launch it this month after a lackluster response from investors.

Market experts though have said Airbnb might receive a warmer reception from investors when it debuts, considering that its financials looked more stable than recent internet unicorns that have gone public.

“I think it’ll be a whole different reception for Airbnb, assuming that they can show they’re a profitable business without having to lose money on marketing,” said Kathleen Smith, principal at Renaissance Capital, a provider of institutional research and IPO ETFs.

Airbnb has not given any details on whether it was profitable in the second quarter of 2019 but has previously said that its earnings before interest, taxes, depreciation, and amortization were positive for 2017 and 2018.

On Wednesday, the company said it raked in more than $1 billion in revenue for the second quarter.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.