Slack, a software company focused on cloud-based messaging will directly list its shares on the New York Stock Exchange, emulating in the footsteps of Spotify. The main benefit here lies in the fact that investors can trade in their shares without conventional restrictions on the lock-up period.
The valuation of Slack has been placed at a figure of $17 billion by Forge Global, a firm that deals with private companies. Direct listing will enable the company to understand the price its share commands from the investors unlike in an IPO. Slack will disclose its listing prospectus on Friday, as per reports from Wall Street.
Volumes traded in the company ranged from $150 million to $200 million in the last six month period as reported by Forge. The fact of there being an increased demand for shares of Slack was corroborated by Scenic Advisement, CEO; Barrett Cohn though according to him supply was low. No comment was offered on secondary market trades by Slack.
With all cloud stocks doing exceedingly well, for example, the likes of Okta, Zsclaer, Coupa and Twilio have multiplied by two times or more over the last year; the hype around Slack is but natural. Videoconferencing firm, Zoom rose the highest among all of them and Slack is at most times bracketed in the category of Zoom as each of them has obtained viral adoption amongst company teams.
The relaxing of restrictions on early investors and employees by Slack has facilitated cash flows in the secondary market. Reports had filtered in about Slack price touching a range of $25 to $26 in private stock deals in the last couple of months. Slack is said to be following the successful path adopted by Spotify when it went about its direct listing.
If Slack too achieves success, then more companies are sure to take its route while going public. The next likely candidate could very well be Airbnb!