Tag Archives: IPO

Airbnb closes $1 billion round

Commentary

After raising $555.5 million last year, vacation marketplace Airbnb raised an additional $447.8 million as it closed its Series F round. This brings its total round to $1 billion and raises the company’s valuation to a solid $31 billion. The investment comes in the wake of the recent Snap IPO, which raised questions about which other unicorn may go public this year. Although Airbnb looks ripe for an IPO in 2017, the company has no intention of going public anytime soon. After all, it already has billions in its war chest, enjoys operational flexibility and is profitable. Recently, the company used its billions to acquire payment startup Tilt and high-end vacation rental manager Luxury Retreat to improve its offerings. The new funding has made Airbnb the second most valuable, venture-backed tech start-up in the world after Uber.

Snapchat raises $3.4 billion in its initial public offering

Commentary

Despite experiencing slow user growth and a net loss of $514.6 million in 2016, Snap, the maker of popular messaging app Snapchat, has raised $3.4 billion in its initial public offering at $17 per share, clinching a reported valuation of $24 billion. The company’s stock continued to climb even though it has yet to receive a single “buy” rating from Wall Street analysts. So why is Snapchat so valuable? Goldman Sachs estimate that the company could reach $2 billion in revenue in 2018, with a projected daily average users of 221 million, a 40% growth from 158 million in 2016. The company indicated that they expect the bulk of the revenue to come from advertising as well as from the sales of their new product, the Snapchat Spectacles, which can record snippets of video that are automatically stored to the user’s Snapchat Memories, a feature that saves snaps, stories and locked content.

Trivago files for IPO

Commentary

Early this week, news broke of German online hotel search aggregator Trivago filing for a US IPO, with shares expected to price between $13 and $15, equating to a potential $428 million offering. At the midpoint of the proposed range, the company controls a considerable market value of $4.9 billion. Founded in 2005, and officially listed as Travel B.V, the company will undergo a name change ahead of its IPO which will take place around the 15th December. In 2012, American travel giant Expedia bought a majority stake in the company of 61.6% for $632 million, and will hold its stake post-IPO. Expedia shares are on the rise, as well as those of Priceline and TripAdvisor- two companies which accounted for a majority of Triage’s revenue this year. Currently experiencing rapid revenue and market growth, Trivago will list on the Nasdaq with the ticker “TRVG”.

LINE IPO raises $1.1 billion

Commentary

After putting its IPO plans on hold during the last two years, Japanese messaging service LINE finally had a successful debut on the New York Stock Exchange last week, raising $1.1 billion. This values the company at around $7 billion. Although LINE is not well-known in the US, the company enjoys massive popularity in Japan. Its messaging service was launched in the aftermath of Japan’s devastating earthquake and tsunami in 2011 to give people a reliable means of communication amidst damaged phone infrastructure nationwide. LINE quickly gained a following of more than 50 million people after its launch. Today, it has more users than Facebook or Twitter in Japan. LINE’s headquarters is in Tokyo, but the majority of the company is owned by Naver Corp., which is South Korea’s biggest search engine.