PublicWire | Emerging Market Stock News
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
No Result
View All Result
PublicWire
No Result
View All Result

Home » Social Media » Slack To Start IPO With A Different Route

Slack To Start IPO With A Different Route

by PublicWire
June 21, 2019
in Social Media, Technology
Reading Time: 2 mins read
0

Following the footsteps of tech giants like Uber, Lyft, Pinterest, and Zoom, collaboration-messaging app Slack is also moving to list shares starting Thursday under the ticker WORK. But unlike its tech counterparts, Slack is going a different route in its public offering and will be pursuing a direct listing rather than the arduous process of a regular initial public offering.

The NYSE has set Slack’s stock reference price, which may help determine where it starts trading, at $26 a share, valuing the company around $15.6 billion.

By going for a direct listing, a similar route taken by Spotify when the music streaming platform went public a few months ago, the San Francisco-based work messaging platform doesn’t have to go through hiring underwriters or selling new shares, just existing shares, unlike the regular IPO. According to experts, going for a direct listing has its benefits. It avoids underwriting fees, which generally run between 4% and 7% of the total proceeds raised in IPO. Furthermore, it also offers less risk of trading volatility as underwriters usually offer underpriced stocks in IPO to create the first-day “pop,” only to see the share price dwindle as it moves through its day-to-day trading.

Slack, like Spotify, is working with Goldman Sachs, Morgan Stanley, and Allen & Co. to list its shares directly on the NYSE, but not as underwriters.

In documents posted with the Securities and Exchange Commission, Slack Technologies Inc. says it posted a loss of $138.9 million on revenue of $400 million in the fiscal year ended Jan. 31, 2019. In February, Slack filed a draft registration statement with the SEC. This could be the primary motivator why the unicorn has finally decided to go public.

More than 600,000 companies and organizations are using Slack as their central collaboration and messaging platform. Others are even considering the platform as an “indispensable” alternative to older forms of communication like emails.

Previous Post

MJ Freeway Lists The First Ever Cannabis Software On Nasdaq

Next Post

Facebook’s Libra Encounters Early Roadblocks From Lawmakers

PublicWire

At PublicWire, we know the vast majority of all investors conduct their due diligence and get their news online in a variety of ways including email, social media, financial websites, text messages, RSS feeds and audio/video podcasts. PublicWire’s financial communications program is uniquely positioned to reach these investors throughout the U.S. and Canada as well as on a global scale.

Related Posts

Technology

Apple taps TSMC’s latest tech and BYD races into Japan

September 15, 2022
0
Technology

Fortress China: Xi Jinping’s plan for economic independence

September 15, 2022
0
Technology

Patreon: fight for talent makes creator economy more costly

September 15, 2022
0
Technology

Wall Street shudders after seeing US inflation data

September 14, 2022
0
Technology

After the tech sell-off: will growth investors keep the faith?

September 14, 2022
0
Technology

UK university develops device to restore sense of touch to stroke patients

September 14, 2022
0
Next Post
Photo: Book Catalog | Flickr | CC BY 2.0

Facebook's Libra Encounters Early Roadblocks From Lawmakers

Please login to join discussion

Subscribe To Our Newsletter

Loading
Ad
PublicWire | Emerging Market Stock News 24/7 | Investor Relations US Stock Market

© Copyright 2022 publicwire.com

Navigate Site

  • About
  • Contact Us
  • Disclaimer
  • Watch LIVE
  • Privacy Policy
  • Terms and Services
  • Contributors

Follow Us

No Result
View All Result
  • LIVE Investor News Channel
  • Cannabis
  • Energy
  • Finance
  • General
  • Medical
  • Podcasts
  • Retail
  • Technology
  • Videos

© Copyright 2022 publicwire.com

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.