Workplace Chat App Slack Confidentially Files for Public Listing
Slack confidentially submits a draft registration statement to the SEC for a public listing. The business messaging company plans a direct listing and seeks a valuation exceeding $10 billion.
Slack confidentially submits a draft registration statement to the Securities and Exchange Commission for a public listing of its Class A common stock. The business messaging company joins other major tech firms like Uber, Lyft, and Airbnb in pursuing a public offering this year. Goldman Sachs leads the offering as Slack seeks a valuation of more than $10 billion.
Instead of a traditional initial public offering, Slack plans to pursue a direct listing on the stock exchange. This approach makes Slack only the second major technology company to choose this route, following the lead of music streaming service Spotify. The direct listing method suits Slack well because the company holds about $900 million in cash on its balance sheet.
The company currently generates significant revenue, reporting $221 million for the year ended in January 2018. Having already raised approximately $1 billion from private investors, Slack waits for the SEC to complete its review process before finalizing the public listing. The actual timing of the listing depends heavily on market conditions and other regulatory factors.