Slack is reportedly following Spotify in going public through a direct listing. Here’s how a direct listing works.
|01/11/2019||Posted by BusinessMediaguide.Com under General World News||
- Slack is reportedly planning to use a rare direct listing to go public, potentially becoming the second big technology company after Spotify to bypass a traditional initial public offering.
- In a direct listing, a company foregoes the usual underwriting process, which involves lining up investors ahead of time and selling shares at a set price, and instead lets the open market play a greater role in setting the price.
- Slack, like Spotify, is perfectly positioned to effectively use a direct listing due to its unique combination of name-brand recognition and an already-massive private market valuation.
- But the direct listing route is a read more >>>