Slack Technologies Inc is "seriously" considering making its stock exchange debut through a direct listing, a source familiar with the matter told Reuters on Friday. The Wall Street Journal reported that Slack, which operates a popular workplace instant-messaging and collaboration app, is likely to debut in the second quarter and currently expects to do so via a direct listing.
The plan for a direct listing will make Slack the second big technology company after Spotify Technology SA to bypass a traditional IPO process in going public.
"Slack's direct listing is an inherently less expensive way of going public, but what it really comes down to is speed," said Daniel Lugasi, a portfolio manager at Florida-based VL Capital Management. Slack declined to comment on reports of direct listing.
The company is an internet-based platform that allows teams and businesses to communicate with each other. Its closest competitor is Microsoft Teams, a free chat add-on for Microsoft's Office365 users. Slack has raised around $1.2 billion in 11 funding rounds, and has 36 investors, according to data provider Crunchbase. It counts SoftBank, T. Rowe Price, Sands Capital Ventures, General Atlantic as its investors.
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