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 Beyond Meat, Inc. Report or Fiver (FVRR) - Get Fiverr International Ltd. 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 Spotify Technology SA 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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