Airbnb and DoorDash plan to target higher valuations for their December IPOs, report says
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- Airbnb and DoorDash are expecting higher than estimated valuations in two of the most anticipated market debuts this year, the Wall Street Journal reported.
- Airbnb plans to target a valuation between $30 billion to $33 billion, above its previous $30 billion estimate.
- DoorDash is seeking a valuation between $25 billion to $28 billion, up from a previous estimate of $25 billion.
- It is unclear what Airbnb and DoorDash's per-share price ranges are for their mid-December IPOs.
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Airbnb and DoorDash plan to target higher valuations for their December IPOs, as the technology sector continues to attract billions in investor flows, the Wall Street Journal reported Monday.
Airbnb is seeking a target range of around $30 billion to $33 billion ahead of its Tuesday investor roadshow, the WSJ said, citing sources. The US-based vacation rental company was previously eyeing a $30 billion valuation.
DoorDash is looking at a range of between $25 billion to $28 billion, higher than the $25 billion valuation that the door-delivery service had previously anticipated, the Journal said. An investor roadshow for the biggest player in the food-delivery service market is scheduled to kick off Monday.
Ordinarily, a company going public appoints underwriters, or investment banks, to set initial price ranges. After it decides how many shares to sell publicly, the nominated underwriter sets forth a valuation. Then an initial share price is released and investors can start trading shares once the company is publicly listed.
At this point, it is unclear what Airbnb and DoorDash's per-share price ranges are. Representatives did not immediately respond to Business Insider's requests for comment.
Both companies are on track for IPOs scheduled to take place in mid-December, a month that's usually quiet for public debuts. But market activity was boosted to a record-setting milestone last week when the Dow Jones hit 30,000 after clarity on the US election lifted investor sentiment.
This year has seen a record amount raised through new public offerings on US exchanges. Over $140 billion has been raised via 383 IPOs this year, beating the full-year record high set in 1999, WSJ said, citing data from Dealogic.
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