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Slack 'seriously' considering direct market listing - source


By and Aparajita Saxena

(Reuters) - Technologies Inc is "seriously" considering making its stock exchange debut through a direct listing, a source familiar with the matter told on Friday.

reported earlier in the day that Slack, which operates a popular workplace instant-messaging and collaboration app, is likely to debut in the second quarter and currently expects to do so via a direct listing.

The plan for a direct listing will make the second big company after Spotify SA to bypass a traditional IPO process in going public.

"Slack's direct listing is an inherently less expensive way of going public, but what it really comes down to is speed," said Daniel Lugasi, a at Florida-based

declined to comment on reports of direct listing.

The company is an that allows teams and businesses to communicate with each other. Its closest competitor is Teams, a free chat add-on for Microsoft's Office365 users.

Slack has raised around $1.2 billion in 11 funding rounds, and has 36 investors, according to data provider It counts <9434.T>, , Sands Capital Ventures, Atlantic as its investors.

that have invested in Slack are "looking for an exit and with the rapid growth of Teams, they want out fast. The direct listing provides the VCs with a quick exit and we believe this is the mitigating factor behind (Slack seeking a direct listing)," Lugasi said.

reported in December that Slack had hired to lead its initial public offering as an

(Reporting by in Bengaluru; Editing by and Maju Samuel)

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

First Published: Sat, January 12 2019. 01:06 IST