Airbnb Inc. and DoorDash Inc. are planning to release higher-than-expected valuation ranges for their initial public offerings, in the latest sign of strength in a booming market for new issues.
Airbnb is planning to target a range of around $30 billion to $33 billion—using a fully diluted share count—when the home-rental startup kicks off its investor roadshow Tuesday, according to people familiar with the matter. That is greater than $30 billion people close to the offering had expected.
DoorDash, meanwhile, plans to target a range of around $25 billion to $28 billion on a fully diluted basis ahead of a roadshow expected to begin Monday. That is greater than the $25 billion people close to the offering had expected.
Typically companies and their underwriters seek to set relatively conservative initial ranges, with room to potentially price the shares at the high end or above them before trading starts.
It isn’t clear what per-share price ranges the companies will disclose.
