Slack to Go Public Today at $26: Will It Get Fiverred or Uberred?


Jun. 20 2019, Updated 11:08 a.m. ET

Another unicorn goes public

Slack (WORK), another flagbearer of the gig economy and a unicorn, will go public today. This year, we have seen a lot of action from unicorns in the primary and secondary markets. Uber (UBER) has been the biggest IPO so far this year. However, IPO investors lost billions on day one of trading. The stocks of the ride-sharing giant fell 7.6% on day one. Fiverr (FVRR), a platform that connects freelancers with those who need them, went public last week with 90% gains on day one. We’ll soon know whether Slack follows Uber or Fiverr on the first day of trading.

Article continues below advertisement

Why slack won’t raise any money today

Slack’s public debut is a little different. Slack is following the direct public offering (or DPO) route to list its shares on NYSE. Unlike an IPO, companies don’t raise any money through a DPO. Instead, they give an exit opportunity to their shareholders. There is no investment banker to market the shares and hold them to reduce volatility. Last year, Spotify (SPOT) followed this route.

Slack (WORK) has priced its shares at $26, valuing the company at $15.7 billion. That’s almost 40x its 2018 revenues. That will make it the biggest IPO since Uber went public last month.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.