Tech IPOs for Airbnb and DoorDash Beat Expectations

Airbnb and DoorDash have raised the prices of their shares above the expected range, as both tech giants aim to raise larger amount of finances while investors demand for stocks amid the historic boom in the IPO market.

Airbnb and DoorDash have raised the prices of their shares above the expected range, as both tech giants aim to raise larger amount of finances while investors demand for stocks amid the historic boom in the IPO market.

Airbnb announced that it would sell its shares at $68 each, which far exceeds the target range of $56 to $60 per share that the company said earlier this week.

The new pricing values the San Francisco-based firm at approximately $47 billion on a fully-diluted basis, including the proceeds of the public offering. This would allow the tech giant to raise about $3.7 billion.

The offering of the home-rental startup’s shares is set to begin on Thursday.

Amid the sudden boom of food delivery services during the pandemic, DoorDash decided to sell shares in its IPO at $189.51 each, which is 86 percent greater than its previous offering price of $102 per share on Tuesday.

The firm’s skyrocketing shares have also increased its market capitalization to approximately $59 billion, which is about four times larger than the previous private market valuation of $15 billion in June.

The IPO for DoorDash began trading on Wednesday.

Both tech giants are making a debut as the IPO market continues to set new records this year. According to Dealogic data, about $140 billion was already raised in the U.S. stock exchanges so far this year. This exceeds the $107 billion full-year record which was tallied in 1999.


© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.