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3 Things That Investors Need to Watch Ahead of Slack's Direct Listing

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Can you Slack that?

Slack is officially coming to the public markets later this week.

But don't get confused -- it's not IPOing like Beyond Meat (BYND) - Get Free Report or Fiver (FVRR) - Get Free Report . Instead, the company is following in Spotify's footsteps and going public through a direct listing. 

What is a direct listing and how is it different than an IPO? To break it down very simply:

A direct listing allows a company to go public without an underwriter. 

An IPO is the companies first sale of stock issued by a company. The companies who IPO have underwriters--generally banks--that help the company price and aid with regulatory requirements.

But, if you want to better understand the difference between the two, TheStreet has a video breaking them down.

Looking forward to Friday, what should investors keep an eye on?

Well, the first thing to note is that Slack is looking for a market value of $16 to $17 billion. This figure is more than twice what it was in its most recent private valuation in 2018, when it was valued around $7 billion.

And the other two include Spotify's performance (SPOT) - Get Free Report since it direct listed back in the spring of 2018 and Bloomberg Intelligence believes that the free to premium conversion will boost revenue growth up to 65% in the next year. 

Related. Slack Looks Poised for a Red-Hot IPO -- Perhaps Too Hot

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