You are here: Home » Reuters » News
Business Standard

Exclusive: Chat-service firm Slack taps Goldman Sachs to lead IPO - sources

Reuters 

By and O'Donnell

(Reuters) - Technologies Inc, a provider of chat and for businesses, has hired to lead its initial public offering (IPO) next year as an underwriter, people familiar with the matter said.

The San Francisco-based company is among a string of Silicon Valley unicorns expected to debut in the stock market in 2019. Other IPO hopefuls include apartment-rental service Airbnb Inc, analytics firm and Stripe Inc, a digital payment company.

Ride-hailing company beat bigger rival in filing for an IPO this week, defying the recent market jitters that have weighed on corporate valuations.

is rounding up its underwriting syndicate and hopes to fetch a valuation of well over $10 billion in its IPO, whose exact timing will depend on market conditions, the sources said on Friday.

The sources asked not to be identified because the matter is confidential. and Goldman Sachs both declined to comment.

Slack is competing against the likes of Microsoft Corp's Teams, Alphabet Inc's Hangouts Chat and Cisco Systems Inc's Webex Teams in the so-called workplace collaboration market, which research firm has projected will be worth $3.2 billion by 2021.

Slack last raised $427 million in August in a private fundraising round, led by and General Atlantic, giving it a valuation of more than $7.1 billion. It previously raised $250 million in 2017 at a $5.1 billion valuation, in a fundraising round led by Japan's SoftBank Group Corp.

It is unclear how market turmoil fueled by the escalating trade tensions between the and could impact Slack's IPO plans.

On Thursday, company braved market volatility and sold around $604.3 million in shares in its IPO.

(Reporting by and O'Donnell in New York; Additional reporting by in New York; Editing by Matthew Lewis)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, December 08 2018. 09:58 IST
RECOMMENDED FOR YOU