Slack may bypass the marquee IPO underwriters like Goldman Sachs and go directly to the market with its upcoming public offering. So says a new report from the Wall Street Journal. If Slack does so, it will be the second major company to use a direct listing after Spotify did last April on the New York Stock Exchange. The Spotify IPO was considered by most to be a success. The report says Slack is likely to hold its IPO in the second quarter of this year. The San Francisco-based company currently plans to use a direct listing, the WSJ report says, but it could also change its plans before the time comes. We reached out to Slack for comment and will update if we hear back. When traditional underwriters handle a big IPO, they line up big institutional investors ahead of time, and this helps establish the asking price for the stock when trading opens. A good deal of money is also made up front for the IPO-ing company. Slack can afford to go without that quick cash. The company … [Read more...] about Report: Slack is planning a direct IPO in 2019, like Spotify did last year
By Megan Henney Published January 11, 2019 IPOs FOXBusiness Facebook Twitter Comments Print video The major IPOs expected in 2019 Constellation Research founder Ray Wang on the outlook for the IPO market and the boost to Netflix from 'Bird Box.' Slack is reportedly planning on skipping a traditional initial public offering (IPO) in favor of going public through a direct listing, according to The Wall Street Journal, potentially becoming the second-biggest tech company to do so. Continue Reading Below The company, which runs a popular workplace instant-messaging app, is expected to debut in the second quarter, according to the Journal, which cited people with knowledge of the subject. Although it expects to do so via a direct listing, its plans could change. MORE FROM FOXBUSINESS.COM.... UBER, SLACK IPOS MAY LEAD MARKET IN 2019 IPO HOLDUP: SEC CAN'T PROCESS APPLICATIONS DURING PARTIAL GOVERNMENT SHUTDOWN In a direct … [Read more...] about Slack could become biggest direct public listing since Spotify
Slack is reportedly planning to use a rare direct listing to go public, potentially becoming the second big technology company after Spotify to bypass a traditional initial public offering. In a direct listing, a company foregoes the usual underwriting process, which involves lining up investors ahead of time and selling shares at a set price, and instead lets the open market play a greater role in setting the price. Slack, like Spotify, is perfectly positioned to effectively use a direct listing due to its unique combination of name-brand recognition and an already-massive private market valuation. But the direct listing route is a risky process, and is not built for every company. Slack is reportedly planning to use a rare direct listing when it enters the public market in the second quarter, following in the footsteps of Spotify which used the same technique last year. But what exactly does “direct listing” mean and why is Slack planning to do one? In order to … [Read more...] about Slack is reportedly following Spotify in going public through a direct listing. Here’s how a direct listing works.
Jake Kanter, provided by Published 5:18 am CST, Friday, January 11, 2019 Slack Slack will go public through a direct listing rather than an IPO, The Wall Street Journal reports. The workplace messaging service is aiming to list between April and June. Slack had previously hired investment bank Goldman Sachs Group to lead its initial public offering. Slack is planning to go public through a direct listing, The Wall Street Journal reported on Friday, citing people familiar with the matter. Slack, which operates a popular workplace instant-messaging and collaboration app, is likely to debut in the second quarter and currently expects to do so via a direct listing, according to the report. Slack was valued at $7.1 billion in August after raising $427 million in an investment round led by Dragoneer Investment Group and General Atlantic. The company has 8 million daily active users. Read more: Slack has only 8 million daily active users but would very much like that to … [Read more...] about Slack is reportedly planning to go public through a direct listing rather than an IPO
(Reuters) - Slack Technologies Inc is planning to go public through a direct listing, the Wall Street Journal reported on Friday, citing people familiar with the matter. Slack, which operates a popular workplace instant-messaging and collaboration app, is likely to debut in the second quarter and currently expects to do so via a direct listing, according to the report. (https://on.wsj.com/2CfAYGp) The plan for direct listing will potentially make Slack the second big technology company after Spotify Technology SA <SPOT.N> to bypass a traditional IPO, WSJ reported. Slack had hired investment bank Goldman Sachs Group Inc <GS.N> to lead its initial public offering as an underwriter, Reuters had reported in December. Slack did not immediately respond to a request for comment outside regular business hours. (Reporting by Bhanu Pratap in Bengaluru; Editing by Shounak Dasgupta) … [Read more...] about Slack planning to pursue direct listing