Airbnb finally decided to proceed with its initial public offering (IPO) after 12 years from it was first founded. The online vacation rental unicorn becomes the next company to stumble from the pandemic. This long-awaited moment finally answers Airbnb’s investors and employees’ frustration over the long-awaited and delayed IPO plan.
Airbnb to complete IPO by next month
As quoted from Reuters, Airbnb plans to complete its IPO on Nasdaq by next month. Airbnb finally commences with the completion after years of pressures from investors and employees involved in the company. The company’s deteriorating financial situation drove the final decision to at last go public. Due to the postponements of Airbnb‘s IPO, the company is expected to seek less than he expected $50 billion from two years ago to $30 billion of valuation.
Chesky’s ambition to develop Airbnb backfires
Airbnb’s plan for IPO is not sudden news. According to Reuters, Airbnb CEO Brian Chesky asked for Lawrence Tosi, Airbnb’s chief financial officer in 2017, to prepare for an IPO by the first quarter of 2018. Soon after, Tosi managed to bring in a $1 billion fundraising from investors with the IPO news. Tosi even initiated discussion with investment banks on Airbnb’s stock market debut that could value up to $50 billion. However, Chesky put a sudden pause on the project to focus on the development of Airbnb. It triggered a clash between Chesky and Tosi, that ended with Tosi’s departure from the company in 2018, and more delays on the IPO plan.
Airbnb’s IPO plan has become quite an issue between its shareholders. The plan itself has never been confirmed until the end of 2019. Meanwhile, numerals of his employees were granted with stock options that would expire in early 2021. If Airbnb fails to complete its IPO plan by the time, shareholders will lose the shares they own. The recent announcement of Airbnb to finally complete its IPO becomes a big relieve to its shareholders.