Thursday 3 October 2019 9:14 am

Airbnb hires Morgan Stanley and Goldman Sachs to lead stock market listing

Airbnb is reportedly preparing to hire Morgan Stanley and Goldman Sachs to advise on its planned stock market debut next year. 

The short-term rental company is considering going public through a direct listing rather than an initial public offering (IPO) in mid-2020, according to Reuters.

Read more: Airbnb plots direct listing instead of traditional IPO for hotly anticipated float

In a direct listing no new shares are sold and investment banks advise on market conditions rather than underwriting, meaning companies can save on fees.

Floating in the middle of next year could help the company avoid any stock market volatility in the run-up to the US presidential election in November 2020. 

The listing makes Airbnb, which was valued at $31bn in its most recent private fundraising round, one of the biggest names to pursue a stock market float next year. 

A direct listing would follow the route taken by Spotify and Slack in 2018 and 2019 respectively, which have traded around 23 per cent and 39 per cent down since going public.

Read more: Authorities continue to question Airbnb as tax bill shifts into decline

This year has been mixed for tech firm listings, as Uber and Lyft have struggled since going public and Wework recently withdrew its IPO.

Last month Airbnb said it made more than $1bn in revenue in the second quarter of the year but gave no details on profitability. 

Main image credit: Getty

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