Slack is going public. The workplace messaging company confidentially filed an S-1, a form companies file in anticipation of an initial public offering, with the Securities and Exchange Commission on Monday.
Last month, The Wall Street Journal reported that the company plans to take the unconventional route of a direct listing.
The direct listing process circumvents the costly fees for underwriters and instead sells shares directly to the public, and there is no lock-up period. They’re rare because no money is raised for the company beforehand.
Smaller-sized startups, particularly in the tech and biotech sectors, have filed direct listings in the past. But Spotify (SPOT) made a splash as the first large company to go public on the New York Stock Exchange via direct listing. Shares of Spotify are down about 8% since the company went public in April 2018.
Slack raked in $221 million in revenue for 2017 and had $900 million in cash on its balance sheet as of October 2018, according to documents reviewed by The Information.
By Melody Hahm.
Full story at Yahoo News.
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