Slack Technologies aims to list shares on the New York Stock Exchange this summer at more than double the valuation of its most recent funding round last summer, according to three sources familiar with the matter.
The San Francisco-based work collaboration software maker’s leadership team is targeting a price of approximately USD 25 per share on the first day of trading, the sources said. That would imply a market valuation of roughly USD 16bn for Slack, the three sources stated.
Since the share price in a direct listing is largely a result of basic supply and demand dynamics, there is no guarantee Slack’s stock will debut at USD 25, two of the sources cautioned. But recent trades of Slack’s stock in private sales support management’s expectations, they said. Bloomberg on Tuesday reported that the private market for Slack shares has seen trades in the area of USD 25 – 27 since March.
When the company last raised a round of equity growth capital from a group of private investors led by Dragoneer and General Atlantic in August 2018, it fetched a USD 7.1bn valuation.
Slack declined to comment.
by Troy Hooper in Los Angeles