NEW YORK (Reuters) – Sagging Technologies in the fast-growing workplace, the messaging and communications platform, and it is done for a specific public trading on Thursday, which will see the market on the New York Stock Exchange, and the value to be around $16 billion, according to a person familiar with the matter.
Slack Technologies’s office in New York, New York, in this undated photo released by Slack Technologies Inc., San Francisco, California, united states, on the 19th of June, 2019 at the latest. Thank you: Slack Technologies, Inc./handout via REUTERS
The so-called direct-entry, that is different from a traditional IPO is that it will not raise fresh funds, will have to try to set up a method that was developed last year, the music streaming company, Spotify Technology.
“We think that the jury on the question of whether this is the right move or not,” said Kathleen Smith, a principal and manager of the IPO etfs Renaissance Capital. “Look at Spotify-it only takes a little bit of time for the stock to get it into position, and after a direct quotation.”
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 avoid agreements that would otherwise have been the shareholders, on the sale of their stock.
Slack direct quotation may have an impact on other big tech companies such as Airbnb, which has been considered by the general public, by means of a similar process, a person familiar with the matter said.
On the New York Stock Exchange on Wednesday to set a reference price of $26 per share, implying a value of around $16 billion. 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.
To her listing, We are expected to pay the $22.1 million in fees to its financial advisers. By way of comparison, the banks earned $85 million in commissions for the 2017 IPO-Snap Inc., which was worth approximately $31 billion at the time of its public listing.
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 after it, Spotify is in stock, it is trading around 15% below the spot where he made his debut as a music-streaming company to sacrifice profit margins for growth.
“Direct deals are still a relatively new car. It’s really interesting to see how this evolves,” Fiverr’s Chief Executive, Micha Kaufman said in an interview last week after the Israel-based company went public.
“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.”
The San Francisco-based Slack, the reported revenue has grown by more than 80 percent to a total of $400 million in 2018, when the loss from continuing operations was $143.85 million. It has over 90 million users, but has, so far, only 100,000 paying customers.
Slack, had approximately $295 million in aggregate cash or cash-like assets at the end of April, and has raised around $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