Airbnb IPO Launch Date and Expected Share Price

[Sharon1014]

Launch date appears set for December 10.  Expected share price $44-50.  The company has also submitted an amended S-1 filing to the SEC yesterday which you can see here (and nope, I'm not trawling through all 350 pages of it to play "spot the difference" 😀, will leave that to the finance journos and market analysts)

S-1/A (sec.gov)

@Melodie-And-John0  @Christine615  @Helen350  @Sally221  @Sarah977  @Ute42 @Zohreh1 @Emiel1 

[Sharon1014]

Feel free to ask any questions.  I know this IPO business can do people's heads in, so whatever questions you ask, no matter how minor, happy to help out or point you in the right direction for answers.

The first thing that comes to mind is, what does this mean for hosts?

When a company goes public, the company then has to account for itself to shareholders and become pro-active about turning a profit.  On the downside, this could mean for example, that

1. The fees the company currently charges may increase.
2. The company may have to make further employee and contractor cuts.
3. The company needs to begin making consistent profits.
4. The company may need to realign its core business strategy and marketing (ABNB has problems with Google, who are directing online searches to other platforms).
5. There may not be enough buyers to soak up the 51.9m share offering at the price indicated.
6. The company may go broke/into liquidation due to high debt levels and extensive employee stock option obligations that do not show up on its balance sheet (estimated $2.7 billion in addition to $3.5 billion debt "time bomb").
7. Potential vaccines to address the pandemic may not provide the hoped for immediate or medium term relief (for various reasons) and may limit international travel in particular until at least 2024 (according to Qantas CEO), impacting the company's ability to service debt and remain solvent.

This really is a watershed moment for the company and for all associated with it.  A lot riding on this IPO including the business environment for hosts.  Much as we as hosts might wish the company well in its public launch for our own sakes if nothing else, there are multiple significant risk factors in play that hosts do need to be aware of (especially if you are exclusively listed on ABNB).

Hope for the best, but prepare for the worst. 

[Dane130]

When will Hosts get to purchase shares at the IPO price? I received an email and filled out the form as I am an eligable host. Thanks in advance.

Dane

[Sharon1014]

Hi @Dane130 .  I don't know.  You will have to wait for communication from the issuing underwriters/brokers.  Not sure who is handling the issue of pre-IPO stock to eligible US hosts but imagine that you will hear something more perhaps later this week or early next week.

Some things to check on however once an offer is made -

1.  Look carefully at what type of stock you are being offered.  There are different "classes" of stock.  You may be offered Class A stock (which has full voting rights and is immediately saleable) or you might be offered Class H stock (which is being reserved for hosts but has no voting rights and which upon sale to another party, becomes Class A stock). 

2.  You should also check whether the shares offered to you are subject to a 90-180 day lock-up period, meaning you can't sell them for the stipulated number of days after launch.  The lock up period exists to prevent company investors and senior execs from off-loading their stock immediately, potentially flooding the market and causing prices to drop.  Here is a link to what the lock up period is  IPO Lock-Up Definition (investopedia.com)

[Alison759]

Which hosts are eligible to buy shares through the IPO?? How can I find out if I am eligible?? Thank you!

[Sarah977]

That ship has sailed. @Alison759

[Scott336]

Morgan Stanley has sent out info via email today regarding the process with steps to follow for qualified/interested parties.  Those who completed these steps with Morgan Stanley will receive further instructions on or about 12/7, then make their purchase on 12/10.

* Once the Airbnb IPO has priced and its registration statement is declared effective by the United States SEC, Morgan Stanley will send a pricing email.
*  This email will contain the final offering price and reiterate the confirmation procedures. At that point, this website will be enabled to accept orders. If you wish to purchase common shares, you must return to this website and complete the confirmation process by December 09, 2020, 11:59 p.m. Eastern Time.

[Sharon1014]

Thanks @Scott336  for updating the rest of us with some of the details available to date. 

That's interesting that Morgan Stanley aren't actually purchasing shares on behalf of hosts prior to the actual launch on Dec 10.  In this case, you do need to pay close attention to what Class of shares are being offered and at what price, since on Dec 10, assuming the launch goes ahead on this date as planned, any hosts wishing to buy shares could also just as easily buy Class A shares on the open market through any broker, possibly at lesser (or greater) prices.

Key information to look at may also be exactly what price the shares being offered to hosts are being priced at, e.g. will they be cheaper or any different from what the expected launch price is.  It has previously been reported elsewhere that Class A shares were expected to launch at just over $34, so this new pricing of $44-50 is some distance away from what was mooted just a few weeks ago.

Please also check what the commission is on the brokerage fee for processing the shares.

ABNB have made much of their 9.2 million share Host Endowment Fund containing Class H shares, however we don't yet know if in fact the Directed Shares Program to hosts is actually this same "fund", i.e. in effect it wouldn't be ABNB funding these 9.2 million shares themselves as has been portrayed, but actually hosts funding their own Host Endowment Fund with no voting rights. 

It would be wonderful if both you and other US hosts can keep us informed on any further updates as they become available, many thanks.

@Dane130 

[Sharon1014]

And please US hosts who receive further communication about this offer, can you advise here whether or not Goldman Sachs (in addition to Morgan Stanley) are also offering shares to hosts, and if so under what terms.  This is important.  Thank you.

[Sarah977]

"The first thing that comes to mind is, what does this mean for hosts?"

As a person who doesn't understand any of this financial stuff and to whom the stock market has always seemed like something unrelated to any reality, just people playing around with money they hope will increase, but can afford to lose, I appreciate you translating how this could affect hosts in the real world of their rental business.

@Sharon1014

[Helen350]

Ditto @Sarah977 . (Not just me then.)

[Sharon1014]

If one person is thinking it, and wondering, then the chances are that at least 80% of everyone else is thinking exactly the same thing but just too timid to ask the question.  @Helen350  So whatever is floating around in your heads, even though it may seem simple, inconsequential or even obvious (but not understood), please just ask.  Every question is a valid question.

@Sarah977 

[Simon144]

Can someone post the title of the email and from whom it was sent?  I have been a super host for over 4 years and I've searched my email box but don't see any communication about the shares.  Thanks!!  @Scott366     @Dane130 

[Jen5]

@Simon144I received my first email regarding the IPO from Airbnb on Nov. 16th. It instructed me to pre-register by Nov. 20th. I then received an email today from Morgan Stanley with links to proceed. The link was specifically for me so there was no way to change the name on the Morgan Stanley account I created.

I suspect that if you didn't pre-register, the option is no longer available. But I'm not sure it matters-- I'm still trying to determine whether there's an advantage to buying this stock early or if I should just wait.

[Luke434]

I pre-registered but have received no follow up communication. Does that mean I am too low on the list to get shares?