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 Report or Fiver (FVRR) - Get 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 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.