Slack to go public through direct listing in Q2 - report

Business 1/11/2019, 11:52 AM
Slack to go public through direct listing in Q2 - report

The messaging company Slack Technologies is planning to bypass the traditional initial public offering (IPO) and offer its shares to investors through a direct listing, the Wall Street Journal reported on Friday citing people familiar with the matter. The company will likely make a debut on the stock market at some point in the second quarter of the year, the report added.

Slack, an acronym for "Searchable Log of All Conversation and Knowledge," was founded by Canadian entrepreneur and businessman Stewart Butterfield in 2013. The company offers workplace chatrooms organized by topic, private groups as well as direct messaging.

If the reports prove to be true, Slack would become only the second big technology company to opt for direct listing instead of the traditional IPO, after Spotify did so last year when it made a debut on the New York Stock Exchange. Direct listing circumvents the traditional underwriting process and gives the open market a greater role in determining the initial price of a stock.

Breaking the News / FH