Facebook vs. Airbnb – Comparing IPO’s

Facebook’s IPO in May 2012 was a big event.
As a private company, it raised $1 billion.

At the IPO, FB sold $16 billion worth of shares of which the company kept $6.8bn. The rest went to expenses, brokers and selling shareholders.

FB’s IPO market cap was $104 billion. For 2012, FB produced $5 billion in revenue and net profit of $1.3 billion.

AirBnb has raised $6 billion cash as a private company and it’ll “raise” $2 billion at the IPO (don’t yet know how much the company keeps – see selling shareholders).

It’s market cap at IPO will be $35 billion.

AirBnB has $5 billion revenue although it’s not profitable yet. That doesn’t matter ’cause the market these days is only paying for multiples on revenue.

Facebook’s stock price halved soon after the IPO to reach a low of $17.55 per share. Since then, it has risen to a price of $272 per share and boasts a market cap of $777 billion.

Comparatively to other recent “tech” IPO’s, Facebook’s value saw the majority of its appreciation as a public company.

Inversely, AirBnB has raised a lot of money as a private company at ever escalating valuations, so I say be careful being the absorbing buyer of the selling shareholder, however this stock could be a real crackerjack.

Incidentally, AirBnb, Uber etc etc are not “tech” companies.

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