Message platform Slack moves ahead with direct listing plans in the US
- Slack plans to forgo a traditional initial public offering and instead intends to sell its shares to bidders in a direct listing
Slack Technologies Inc. has filed with regulators to go public in the US without disclosing details of its share-sale plans.
The messaging platform company, previously reported to be pursuing a direct listing of its stock, said in a statement Monday that it had submitted a confidential filing with the Securities and Exchange Commission. Slack is working with Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. on the share sale, according to a person familiar with the matter who asked not to be identified because the matter wasn’t public.
Slack plans to forgo a traditional initial public offering and instead intends to sell its shares to bidders in a direct listing, a person familiar with the matter said last month. While that would preclude the company from raising money by issuing new shares for sale, it would avoid some typical underwriting fees and allow current investors to sell shares without a lock-up period.
The company is choosing the unusual method for going public because it does not need the cash or publicity of an IPO, the person said at the time. The share sale, which might take place toward mid-year, could value Slack at more than US$7 billion, according to the person, who added that the San Francisco-based company’s plans could still change.
The company was valued at US$7.1 billion in a US$427 million funding round in August.
Representatives for Slack, Goldman Sachs and Morgan Stanley declined to comment. Allen & Co. did not immediately respond to a request for comment.