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Year 2020 is expected to end on a very high note on Wall Street. New York Stock market is expected to reach a new record high as the year ends. And December is set to add to the hectic year-end on record for initial public offerings in the U.S., with DoorDash Inc. and Airbnb Inc. ready to start trading this week in long-awaited listings.
The IPI listing of the two companies has created a lot of excitement among the investors. Websites covering stocks trading such as thelion.com and LumosBusiness.com have been actively reporting on the expected ti share prices of the two companies.
Many feel that market sentiment encouraged the two companies to raise their initial prices. DoorDash is marketing 33 million shares at a price between $95 to $102 apiece. It is expected to start trading tomorrow, Wednesday, December 9. Similarly, Airbnb is also expected to offer its shares for $56 to $60 apiece, up from a previous price range of $44 to $50 each.
The two companies are expected to raise at least 6.2 billion dollars combined. The San Francisco based DoorDash has more than 18 million customers and one million drivers. According to New York Times, DoorDash’s revenue more than tripled to $1.92 billion in the first nine months of the year compared to $587 million in the same period last year, though it said that growth was likely to slow in the future.
According to Bloomberg, Airbnb, which has seen a bounce back in domestic bookings since the early days of the pandemic crushed demand, plans to offer 50 million shares, with existing shareholders selling an additional 1.6 million shares. Morgan Stanley and Goldman Sachs Group Inc. are leading the IPO. Airbnb plans to trade on the Nasdaq Global Select Market under the symbol ABNB.
According to fortune.com, also on deck to go public this month are Affirm Holdings Inc., which lets online shoppers pay for purchases such as Peloton bikes in installments, online video-game company Roblox Corp. and ContextLogic Inc., the parent of discount online retailer Wish. Each is likely to attain a valuation of tens of billions of dollars in its listing. ContextLogic Inc is offering 46 million Class A shares in the IPO, which is expected to price between $22 and $24 a share. According to MarketWatch, with 586.4 million Class A and Class B shares expected to be outstanding after the IPO, the pricing could value the company at up to $14.07 billion.
