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.
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.
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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
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