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Airbnb mulling direct listing instead of traditional IPO
Airbnb Inc is still planning to go public next year but could take a different route than a traditional IPO.
The San Francisco-based home sharing unicorn could opt for a direct listing rather than an initial public offering, according to people familiar with the matter.
The company has so far made no comment on the issue.
For a company under no pressure to raise extra funds, a direct listing has several advantages.
It removes the need to open its books to investors and the large fees demanded from firms to underwrite a IPO.
A direct listing doesn’t issue new shares so gives employees and early investors a chance to cash out.
Other tech firms which have gone for a direct listing include Slack Technologies and Spotify.
The experiences of newly public Uber, Lyft and the current travails of WeWork show that there is still massive scepticism in traditional IPOs for loss making Silicon Valley firms even though Airbnb is in much better shape financially.
"Given the struggles so many tech companies have had in the past year and a half, it’s not shocking they might want to try something different," former Uber political adviser Bradley Tusk said.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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