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Slack start to the trading with the gulf, with a value of more than $23 billion in

NEW YORK (Reuters) – Shares of Soft Technologies, Inc., the fast-growing workplace, the messaging and communication platform, for the first time, it has been publicly traded, at a price of $38.50 each, and the valuation of the company at more than $23 billion, more than $16 billion of the reference point can be set by the New York Stock Exchange.

The Slack Technologies, Inc. As CEO, Stewart Butterfield, rings the opening bell at the New York Stock Exchange (NYSE) while the company’s initial public OFFERING in New York, New York, USA, 20 June, 2019 at the latest. REUTERS/Brendan McDermid

The stock rose to 54.2%, up to more than £ 40.08 for lunch on a Thursday. The new york stock exchange on Wednesday to set a reference price of $26 each. For the price, it is not a statement about the price, but it will be used in the process of building a book of orders.

Slack went the unusual route of a direct application for listing on the New York Stock Exchange on Thursday, which will be different from that of a traditional IPO because it did not raise fresh funds. The list is a test for a method that was developed last year, the music streaming company, Spotify Technologies SA.

Slack’s debut, follows a spate of much-anticipated technology Ipos, some of which, such as Uber Technologies Inc and Lyft Inc. have had a disappointing start to the trading.

The direct entry model, provides the Oil an opportunity to save a considerable amount of investment banking fees, and to avoid contracts that would otherwise have been the shareholders, on the sale of their stock.

“We think that it is a direct list, it is a more effective and efficient manner, in order to arrive at a normalized level of supply and demand, without the constraints of an IPO of the company,” said Allen, Shim, Slack’s chief executive officer (ceo).

Slack direct quotation may have an impact on other big tech companies such as Airbnb Inc., which has been considered by the general public, by means of a similar process, a person familiar with the matter said.

Spotify’s immediate entry in the April of 2018, it was seen as a success in its time, with a healthy number of buyers and sellers.

For more than a year later, and Spotify is in stock, it is trading around 15% below the spot where he made his debut as the company sacrifices profit margin for growth.

“Direct deals are still a relatively new car. It’s really interesting to see how this evolves,” Fiverr International Ltd., Chief Executive Officer and Micha Kaufman said in an interview last week after the Israel-based company that offers an online marketplace for freelance services went with the crowd.

“But it’s definitely more appropriate for companies with a increased a larger amount for a longer period of time in the private sector, and its willingness to provide its investors with a value-added, or output.”

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Revenue for the San Francisco-based Slack has increased by more than 80 percent to a total of $400 million in 2018, however, the reported loss from continuing operations of $143.85 million. It has over 90 million users, but has, so far, only 100,000 paying customers.

“We are in a growth phase right now and we will continue to invest, but we expect to hit break-even cash flow, quickly,” CFO, Shim said.

Slack would have been about $800 million in total cash and cash-like current assets and marketable securities, which are issued at the end of April, and has raised about $1.2 billion so far from private investors, according to data provider PitchBook, and the firm’s regulatory filing.

Reporting by Joshua Franklin and Carl O’donnell in New York; Editing by Cynthia Osterman and Jeffrey Benkoe

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