Slack Technologies to debut on Wall Street in direct listing at US$26 per share

In a direct listing, there are more risks in terms of share price volatility compared to an IPO as the stocks are more exposed to the open market.

Slack Technologies Source: Bloomberg

Workplace instant messaging app Slack will be making its public debut on the New York Stock Exchange (NYSE) on Thursday (June 20, 2019) at a reference price of US$26 per share, which would value the firm at around US$15.7 billion. The stock will be listed with the symbol WORK.

The latest valuation will price the tech firm's valuation close to its recent private sales, where its stock's valuation was pushed to US$16 billion. Shareholders were said to have sold stock to private buyers earlier this year for shares at a range of US$24 or US$27 per share.

Last year, Slack was valued at US$7.1 billion by private investors.

Instead of an initial public offering (IPO), Slack has opted for a direct listing without doing an additional raise or bringing in underwriters to handle the deal. Music tech firm Spotify also made a direct listing last year, forgoing the more traditional IPO route start-ups tend to take.

The reference price is not the offering price. The opening public price will be determined by buy and sell orders collected by the bourse from broker-dealers ,the NYSE said in a notice early this morning.

In a direct listing, there are more risks in terms of share price volatility compared to an IPO as the stocks have a larger exposure to the open market.

Bumper IPO year for tech stocks

Tech firms are queueing up in line to list in the public market this year, with Wall Street scooping up most of the listings.

From ride-hailing app Lyft’s listing in March, to scrapbook firm Pinterest in April, tech giant Uber in May, even now Chinese ecommerce Alibaba is jumping on the IPO bandwagon to catch the wave.

Alibaba is said to have filed confidentially for a listing in Hong Kong last week and is expected to file for as much as US$20 billion in the new listing. The ecommerce firm already has a listing on the NYSE, where it raised US$25 billion in 2014, chalking up the largest IPO listing in history.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.