Airbnb IPO
Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris (Photo: Reuters / Charles Platiau)

After previously hinting at a possible initial public offering (IPO) earlier in the year, online property brokerage firm Airbnb revealed this week its plans of going public in 2020. Unfortunately, the company did not specify an exact date for its planned debut and only stated that it will be within 2020.

The last time Airbnb had mentioned an IPO was back in March of this year. Airbnb co-founder Nathan Blecharczyk mentioned during that time that the company has not yet decided if it would go public this year, but it is taking steps to make it an eventual possibility.

The company executive mentioned during that time that the company was already taking the step to get itself ready to go public within the year. However, Blecharczyk disclaimed that just because they are preparing, it doesn't necessarily mean that they will immediately be going public. In June, Airbnb had revealed that it plans to list its shares via a direct listing.

During its latest announcement, Airbnb declined to reveal whether it had already filed its S-1 IPO paperwork with its chosen exchange. The document could be potentially useful for would-be investors as it will provide the basic financial information of the company.

The tech startup was last privately valued at around $31 billion in September 2017. Airbnb is likely considering a lot of factors prior to going public given the current predicament of other startups that had already had their IPO this year.

The majority of the tech startups that had gone public this year, including Uber and Lyft, are currently trading below their initial IPO prices. Other tech startups that have recently gone public, such as CloudFare, Pinterest, Slack, and Zoom, are doing fairly well and are trading above their IPO price.

Apart from Uber's recent listing, Airbnb's IPO is one of the most heavily anticipated IPOs for the year. Unlike other tech startups, Airbnb does have a lot of potential given its recent performance. Airbnb previously breached the $1 billion revenue mark in the third quarter of 2018, further increasing the anticipation for its eventually public listing.

Airbnb's success story is a tale that is repeatedly being told to inspire future tech entrepreneurs. The company was started by CEO Brian Chesky along with a couple of his roommates in 2008.

Due to its innovative approach in connecting renters with homeowners, the company was able to get massive financial support from a number of investors, including Jeff Bezos' venture capital group. The company has since received a grand total of $4.4 billion in investments since it was founded.