Airbnb, the tourism and accommodation-booking platform, has announced its plans to go public in 2020. This is according to a statement released by the company.
In the statement, the company disclosed that it had hit over $1 billion in revenue for the second quarter of 2019. That’s the second time the company hit more than $1 billion in its history.
What you should know: According to the company, Airbnb’s housing stock now includes 7 million listings in more than 100,000 cities around the world. The company made it known that over 1,000 cities had more than 1,000 listings.
There’s also more money coming from its tourism business, with more than 40,000 tours booked in over 1,000 cities. All these led to over $100 billion in economic impact across 30 countries.
Although Airbnb did not clarify whether it had confidentially filed its S-1 IPO paperwork, which would include financial information for potential investors to consider, the co-founder Nathan Blecharczyk dropped hints of potential IPO plans in the past.
Why this matters: The Company’s imminent public offering is good news for potential investors who will consider investing in the public traded entity.
Meanwhile, Airbnb is yet to release any details about how it intends to list its shares, whether using an underwriter or taking a less costly, direct-listing route to investors.
What is a direct listing? A direct listing, also known as a direct public offering is a process by which a company sells its own shares directly to the public. There are no underwriters involved. The company’s existing shares are listed at the exchange, and people who own them, such as the company’s existing investors, can choose to sell their shares directly on the public markets.
About Airbnb: Airbnb which, was founded in 2008, is an accommodation booking platform that offers lodging, primarily homestays, or tourism experiences. The company is based in San Francisco, California, United States.