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Airbnb files draft registration for an IPO

Airbnb files draft registration for an IPO
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Airbnb announced on Wednesday that it has filed a draft registration to the Securities and Exchange Commission (SEC) for an initial public offering, meaning investors could soon take out stocks in the short-term rental platform.

The announcement did not specify how many shares it would put on the stock market. The company initially announced plans to go public last September.

On Tuesday, the S&P 500 hit a new high as investors appear to see signs of a recovering economy.

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The news comes as the hospitality industry has faced a blow amid the coronavirus pandemic, which has led to several foreign and domestic travel advisories. The industry has lost over $330 billion in revenue since the beginning of March, according to an August report from the U.S. Travel Association.

In May Airbnb announced that it would lay off a fourth of its staff as it experienced a dramatic drop in revenue amid the coronavirus outbreak. Airbnb saw an uptick in sales this summer as travelers booked rentals in rural areas, CNBC reported.

Founded in 2008, Airbnb has posed a threat to the hotel industry by allowing individuals to rent out rooms or properties to travelers.