On Wednesday, the travel site Airbnb announced that it submitted a draft registration statement to the Securities and Exchange Commission proposing an initial public offering of its common stock.
What Happened: Airbnb, after earlier reports this month that it would go forward with an IPO, filed paperwork with the SEC Wednesday.
Outside of the filing being reported, no information was released on a price range or the number of shares being offered.
Why It’s Important: Airbnb has been rumoured to be planning to go public for months.
The San Francisco-based company saw a major drop in second-quarter earnings, with revenue falling 67% year-over-year to $335 million in the June-ending quarter, according to Bloomberg.
No disclosures were made Wednesday as to the firms underwriting the IPO. The Wall Street Journal previously reported that Morgan Stanley MS and Goldman Sachs Group Inc. GS were potential underwriters.
Airbnb was founded in 2008 and at one point had a valuation of over $31 billion, but the coronavirus pandemic-driven downturn has led to layoffs and declining revenues.
What’s Next: The SEC has to review the filing and give the greenlight for Airnbnb’s long-awaited IPO.
Photo courtesy of Airbnb.
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