Slack plans a direct IPO in 2019, as did Spotify


Slack can bypass IPO underwriters of prominent brands such as Goldman Sachs and go directly to the market with its upcoming public offering. So says a new report from the Wall Street newspaper. If Slack does, it will be the second big company to use a direct quote after Spotify last April on the New York Stock Exchange. The IPO of Spotify has been considered by many to be a success.

The report says that Slack is likely to hold its IPO in the second quarter of this year. The company based in San Francisco currently plans to use a direct list, the WSJ the report says, but it could also change its plans before the time comes.

We contacted Slack for a comment and we will update if we hear from you.

When traditional underwriters manage a large IPO, large institutional investors align themselves in advance, and this helps to establish the price required for the stock when the trading opens. Even a good chunk of money is created for the IPO company.

Slack can afford to go without those quick cash. The company raised $ 427 million in new loans in August, resulting in a $ 7.1 billion valuation. In addition, Slack would avoid paying large subscription fees and its employees would avoid a waiting period before selling their shares.

In 2018, Slack had more than 8 million active users every day, including 3 million paying users. The company was launched in 2013, offering a more functional way of conducting messaging between interfaces and content sharing.

The company has enjoyed a lot of attention from the media and advertising from investors, and probably if it is deserved. We will know it for sure when the company will become public this year.


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