![]() ![]() The direct listing process is a more efficient way to price a stock, he said, “but I don’t think anything comes close to not having to dilute existing shareholders by 10%.”īutterfield said he also wanted to avoid the lockup period. “We’re not ideological crusaders on this stuff,” he said. Slack Chief Executive Officer Stewart Butterfield said Thursday that the company chose not to have a traditional IPO for a pragmatic reason: It didn’t need the cash. advised Slack on the listing, the same trio of banks that lined up when Spotify went public. Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. Spotify’s stock is up 13% from its reference price since then. ![]() The music-streaming provider went public using a similar maneuver last year, the last high-profile company to do so. Slack, which makes software for workers to chat and collaborate on projects, directly listed its shares on the New York Stock Exchange, bypassing the usual fundraising process of an IPO and allowing shareholders to sell right away without a lockup period.Ī parallel for this unusual type of stock listing is Spotify Technology SA. $75 billion value and bypassing Lyft Inc. markets this year, topped only by Uber Technologies Inc. Thursday’s debut makes Slack the second-most valuable technology company to reach U.S. That’s a huge increase from Slack’s last private funding round in August, which valued the company at $7.1 billion. The stock closed at $38.62, giving the company a market value of $19.5 billion. Slack opened at $38.50 on the New York Stock Exchange Thursday, well above the reference price of $26 that was set for the shares in the direct listing. took a different route on Thursday, and saw its shares soar as it went public without an IPO. A parade of initial public offerings from Silicon Valley this year has garnered a mixed reception from investors. ![]()
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