10/22/2023 0 Comments Slack technologies slack![]() ![]() ![]() In a direct listing, shares are exposed more directly to the open market. The process can also be riskier in terms of share price volatility compared with an IPO, where underwriters line up investors in advance. Although existing shares are sold, a direct listing does not issue new shares, averting share dilution but also forgoing the new funds raised in an IPO. The direct listing approach, which was also employed by Spotify last year, cuts down on fees to investment bankers in IPOs. Yet Slack's decision to forgo an initial public offering distinguishes it from the crowd and could be a precursor of more such issues, according to some experts. Known for its workplace messaging and information sharing program, Slack joins the growing class of 2019 as far as prominent companies going public, a group that already includes Uber, Levi's and Beyond Meat. But Butterfield said that entering public markets positions the company to raise funds for growth programs down the road. Slack-the happy byproduct of a failed video-game initiative by Butterfield and colleagues-is not raising capital with the issuance. "We just see an enormous opportunity," chief executive and co-founder Stewart Butterfield told CNBC Thursday shortly before ringing the opening bell of the NYSE. That left the company, which trades under the ticker of "WORK," with a market capitalization of around $20 billion. The exchange had set a reference price of $26. Shares of the company, whose arrival was marked with a giant purple banner outside the NYSE, initially surged as high as $42 before pulling back somewhat and finishing at $38.62. ![]()
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