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.