Tech

Airbnb boosts range of its IPO shares giving it up to a $42 billion valuation

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Key Points
  • Airbnb said it now expects to list shares between $56 and $60 per share in its initial public offering, underscoring demand for new U.S. stocks.
  • The pricing gives it up to a $42 billion valuation, fully diluted.
  • The U.S. home rental firm had on Tuesday set a price range for its IPO to sell shares at $44 and $50 apiece.
Filip Radwanski | LightRocket | Getty Images

Airbnb now expects to offer shares for its initial public offering at a range between $56 and $60 per share, underscoring demand for new U.S. stocks, according to an S-1/A filing Monday.

The U.S. home rental firm had on Tuesday set a price range for its IPO to sell shares at $44 and $50 apiece.

At the upper end of the new range, Airbnb would sell $3.1 billion in stock and have a fully diluted valuation, which includes securities such as options and restricted stock units, of $41.8 billion.

This is well above the $18 billion Airbnb was worth in an April private fundraising round in the early weeks of the Covid-19 pandemic in the United States, and above the $31 billion in its last pre-Covid-19 fundraising in 2017.

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Airbnb's stock market debut, slated for Dec. 10 on Nasdaq, will be one of the largest and most anticipated U.S. IPOs of 2020, which has already been a bumper year for flotations.

Record label Warner Music, data analytics firm Palantir Technologies and data warehouse company Snowflake have all gone public in the past few months.

Food delivery startup DoorDash on Friday also raised its IPO target price range.

News of the planned IPO price increase was first reported by The Wall Street Journal.

-- With additional reporting by CNBC.