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Courtesy of Airbnb
Airbnb
ended up raising $3.5 billion, in one of the most anticipated initial public offerings of the year.
The home-sharing network sold 51,551,723 Class A shares at $68 each, a person familiar with the situation said. This implies a market cap of $47 billion.
The $68 price is above the $56 to $60 price range the company set earlier this week, and higher than prior expectations of $44 to $50. Airbnb will trade Thursday on the Nasdaq under the symbol ABNB.
Morgan Stanley
and
Goldman Sachs
are lead underwriters on the deal.
Airbnb stock indicated to open at $150 a share just after 11 a.m.
At $3.5 billion, the offering ranks as the third-biggest IPO of the year, according to Dealogic. It’s also bigger than the $3.4 billion raised by
DoorDash
on Tuesday. Including the so-called green shoe, the number of shares sold to underwriters, Airbnb will have raised $3.7 billion.
Airbnb lets users rent their apartments or homes for short- or long-term stays. The San Francisco company is expected to benefit when travel demand rebounds in 2021, while margins will gain from efforts to control costs imposed as a result of the pandemic, according to Atlantic Equities analyst James Cordwell, who last week picked up coverage of Airbnb with an Overweight rating and $75 price target.
Sequoia Capital will own 16.4% of total voting power after the offering, according to a prospectus. Brian Chesky, Airbnb CEO and co-founder, will have 15.1%. Co-founders Nathan Blecharczyk and Joseph Gebbia will each have 13.9%.
Hydrofarm Holdings Group is also on trap to trade Thursday. The company raised $173 million late Wednesday, when it sold 8,666,667 shares at $20 each, above its expected price range. The pricing came after Hydrofarm boosted its range Wednesday to $17 to $18, up from its prior expectations of $14 to $16. Hydrofarm will trade on the Nasdaq under the symbol HYFM.
J.P. Morgan
and Stifel are lead underwriters on the deal.
Hydrofarm distributes and makes hydroponics equipment and supplies. Its products are used to grow and cultivate cannabis, flowers, fruits, plants, and vegetables, a prospectus said. Hydrofarm is looking to go public as the movement to legalize cannabis gains momentum in the U.S. In November, voters in New Jersey chose to legalize marijuana.
Write to Luisa Beltran at luisa.beltran@dowjones.com
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