Airbnb the accommodation concept loved by tourists and hated by hotels is planning to list as a public company next year meaning more disruption to the battle for the tourism dollar.
The company has been valued at $A46m by American firm Renaissance Capital, a leader in the field of researching potential IPOs.
It is a startling assessment of a company that humbly started when three mates in San Francisco looking to make a dollar threw three air mattresses on the floor and set up a website offering overnight accommodation – with a free breakfast the next morning.
They called the project AirBed and Breakfast.
Its grown into a massive home-sharing enterprise with an estimated six guests from its seven million listings in 100,000 cities around the world checking into an Airbnb every second.
Airbnb is optimistic about its launch but cautious about full disclosure of its trading figures at this stage.
The company says it was profitable before tax in 2018 and 2019 and told Associated Press it made more “substantially more than” $1b in revenue in the second quarter of 2019. It did not say if it made a quarterly profit.
Airbnb’s projected launch comes at a testing time recently for IPOs with Uber trading well below their launch prices.
Office accommodation company WeWork which is generating big revenue figures but equally big start up decided to postpone its planned IPO launch this month until its financial future is clearer.