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TOKYO–()–Financial executives at wealth management advisory Oita Chuo Pacific Management have commented on Airbnb Inc., as the company are planning to file paperwork for a stock market listing within the next few weeks, setting the stage for its shares to begin trading as early as the fourth quarter.
“Airbnb is preparing to confidentially file its documentation for an initial public offering with the U.S. Securities and Exchange Commission. The move has been long-awaited and marks an impressive turnaround for the home-share firm following the nosedive in which the coronavirus pandemic sent the travel industry,” commented Michael Knight, Head of Corporate Equities at Oita Chuo Pacific Management. “The company is aiming to file paperwork before the end of August however its plans could change if further outbreaks of the disease proceed to flare in the U.S.,” he added.
Airbnb Chief Executive Officer, Brian Chesky, had previously planned to take the initial steps towards a listing in March, but the virus kiboshed his intentions. By April, Chesky faced $1 billion in customer cancellations. Global lock-downs and travel bans caused reservations to fall around 90%, and Airbnb had to slash 25% of its workforce in a survival attempt. Rival travel sites, such as TripAdvisor Inc. and Booking Holding’s Inc., also entered disaster mode and had to abolish thousands of jobs.
“By May, Airbnb was already experiencing a recovery with the number of nights booked at U.S. listings between May 17 and June 3 higher than during the same period last year,” commented Jonathan Marshall, Head of Wealth Management at Oita Chuo Pacific Management.
As of June 17, Airbnb’s bookings had increased 20% year over year in the U.S, according to data gathered by Oita Chuo Pacific Management analysts.
Before the coronavirus outbreak, Airbnb was steering towards a non-traditional approach to the public markets. The company had decided to follow in the footsteps of Spotify Technology SA and list directly, forgoing the raising of further capital by selling shares and encouraging its investors to put their shares on the market without waiting for a lock-up period.
In April, the uncertainty triggered by the pandemic prompted Airbnb to raise $2 billion in debt and equity securities to shore up its finances, reducing its company valuation from $31 billion to $18 billion. As a result of this, the company opted to take the traditional IPO path to generate cash for the business.
About Oita Chuo Pacific Management
Oita Chuo Pacific Management is a recognized leader in wealth management advisory with offices located in the heart of Tokyo, Japan.
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