The derivative reflects Airbnb shares’ condition and does not grant its holder any equity rights, including the right to supply the underlying asset.
The FTX crypto-derivative platform has listed Airbnb pre-IPO contracts. Derivatives will allow traders to track the company’s stock prices on the NASDAQ stock exchange at the end of the first day of placement. They will then be converted into Airbnb fractional share contracts.
Online platform for placement, search, and short-term rental of housing Airbnb will hold an IPO on the NASDAQ exchange today under the Ticker ABNB. According to The Wall Street Journal, the company priced its shares at $68 per share, which exceeds the target range of $56-60 that was set earlier this week.
Given that Airbnb plans to sell 52 million of its shares, $3.7 billion can be raised at the maximum price. Thus, the company’s capitalization can grow to $47 billion. Before the pandemic, investors valued Airbnb’s business at $26 billion. In April, a round of funding was held, during which the company was valued at $18 billion. The valuation obtained during the IPO will be 2.6 times higher.
What FTX offers traders?
Derivatives listed on FTX represent contracts whose execution is related to the market value of ABNB shares at the end of the first trading day. The calculation of these instruments is made exclusively in bitcoin. FTX emphasizes that pre-IPO contracts are not “freely traded” – they can only be bought or sold to the Issuer.
Derivatives reflect Airbnb shares’ current state and do not grant their holder any equity rights, including rights to supply the underlying asset. Their validity is limited and expires after the closing of the trading session on the first day of the IPO.
Upon expiration, the contracts are automatically converted to derivatives for fractional Airbnb shares. FTX reserves the right to cancel contracts with one day’s advance notice if the IPO does not occur before March 9, 2021. Contract brokerage services are provided by the German company CM-Equity AG