Kiwis likely to be keen on a piece of Airbnb
Despite Covid-19, home-sharing platform is pressing on with plans for share offer
Kiwi investors are lining up for a piece of of Airbnb, which is expected to list on America’s Nasdaq market next month. The US-based home-sharing platform was due to have released details of its planned initial public offer (IPO) this week, but business news service Bloomberg says that has been delayed until next week because of uncertainty surrounding the US election result.
Airbnb is seeking to raise US$3 billion ($4.35b) in a move that would give the company a valuation of around US$30b.
Next month, Airbnb will set out its case in an investor roadshow, before it lays out plans to set an IPO price range and eventually trade on the stock market, despite a recent upsurge in coronavirus cases in the United States and around the world.
The Airbnb listing on the Nasdaq promises to be one of the largest stock market listings of the year. Airbnb had initially intended to launch its IPO proceedings in March, just before the pandemic really took off.
A listing for Airbnb would follow in the footsteps of other companies going public this year, including record label Warner Music Group, data analytics firm Palantir Technologies and data warehouse company Snowflake.
This year, as the coronavirus pandemic shut down global travel, Airbnb saw its bookings plummet and revenue tumble.
Hatch, the Wellington-based digital investment platform that allows Kiwis to invest in US sharemarkets, expects to see a high level of interest in the issue.
“It is likely that a high percentage of existing investors will be interested, as they are with most major IPOs,” said Hatch general manager Kristen Lunman.
She noted that 2019 and this year have been big for IPOs in the United States.
“I suggest that with this one, it will be not just be existing Hatch investors but there will also be an influx of new investors who will see it as an opportunity to get investing,” she said.
Hatch has 65,000 people signed up. Since its inception two years ago, $350 million has been invested in US stocks via the platform.
Lunman said Airbnb, like last year’s listing of the workplace communication software company Slack, has a high profile and a lot of public understanding thanks to its visibility in day-to-day life.
“With Airbnb, it has the potential to be the most valuable hospitality business in the world,” Lunman said.
She said Airbnb had seen an incredible rebound from Covid-19 over its most challenging season.
Fletcher rebounds
Fletcher Building’s badly beaten up share price has rebounded strongly after the company’s earnings update this week.
The company said that in the first four months of its 2021 financial year, group earnings before interest and tax (EBIT) before significant items was $227m, up $80m.
At current levels, the stock is fully
$2 higher than where it was in midAugust.
Castle Point Funds co-founder Richard Stubbs said Fletcher’s announcement was not too surprising given strong residential building activity and robust building consent numbers after the lockdown.
“It is also encouraging to see costout programmes delivering EBIT improvement,” he said.
Fletcher Building’s trading statement reflected the trend of more positive signals recently for the state of the economy.
The company had indicated at its annual meeting that a stronger than expected first quarter was on the cards.
New dwelling consents are up 3.5 per cent for the year ended September 2020.
Plexure placement
With Airbnb, it has the potential to be the most valuable hospitality business in the world. Hatch general manager Kristen Lunman
Mobile marketing company Plexure has undertaken a A$32m ($33.8m) placement through a new secondary ASX listing and $5m share purchase plan to accelerate global expansion.
The company, in which McDonald’s has a stake, plans to keep its primary listing on the main NZX board.
Plexure’s mobile platform is used by companies including McDonald’s, White Castle and 7-Eleven for online ordering, marketing and loyalty programmes.
McDonald’s will participate in the offer to maintain its current 9.9 per cent stake.
The company said its revenue grew by 23 per cent in the first half, compared with the previous corresponding period, to $14.4m.