Slack, a well-known platform for business cooperation that simulates a virtual working place through simple messaging interface confirmed their IPO in an official filling submitted on April 26th, 2019.
Instead of going for initial public offer like Lyft, Pinterest, or Zoom did in 2019, Slack will follow the example set by Spotify, which means that Slack is planning DPO instead of IPO.
Slack IPO 2019: Slack Looking to Structure DPO instead of IPO
Slack will be following an example set by Spotify, although Spotify shares were trading below the opening price on April 26th when Slack confirmed their IPO debut.
Nevertheless, Slack agreed to have Morgan Stanley lead their DPO (direct public offer), hoping to reach a more favorable opening price.
The reason why some companies going public are choosing DPO over IPO is the fact that direct offers are somewhat more cost-effective with higher offers and low costs.
Instead of having investment bankers determining the share price for Slack IPO, market will determine the opening share price through DPO for Slack.
The present valuation for Slack, approved for a listing on New York Stock Exchange (NYSE) under the thicker SK, is set at 15 billion dollars.
Slack IPO 2019 Financial Reports and User Statistics
In the period between January 31st, 2018 to January 31st, 2019, Slack reported 400.6 million dollars in revenue, recording 82% increase year to year.
Losses for the fiscal year 2019 also increased with the revenue, set at 140.7 million in losses for 2019 in oppose to 140.1 million in 2018.
The number of daily active users is set at over 10 million dollars, with the typical paying user spending at least 90 minutes actively on the platforms, connected minimum 9 hours per working day.
Additionally, Slack has 88,000 paying customers with 49% increase in oppose to fiscal year 2018.