NEW YORK (Reuters) – Slack Applied sciences, the proprietor of the office immediate messaging app, plans to go public on June 20, the corporate mentioned on Monday, a check of investor urge for food for loss-making expertise shares within the wake of Uber Applied sciences Inc’s underwhelming market debut.
Slack is among the most high-profile firms left to go public in 2019 and its debut could possibly be a bellwether for different tech listings this yr.
To date in 2019, firms reminiscent of Pinterest Inc, Zoom Video Communications and Past Meat have gone public and seen their shares commerce up.
Nonetheless, the struggles of Uber and smaller ride-hailing rival Lyft Inc, the 2 greatest preliminary public choices (IPOs) up to now in 2019, have forged a pall over new tech listings.
Uber shares fell as a lot as 10% on Monday, greater than doubling their losses for the reason that ride-hailing large’s poorly acquired Wall Road debut final week and elevating extra questions on traders’ religion in its potential to make earnings.
San Francisco-based Slack reported losses from operations of $143.85 million for 2018, a fraction of the $three billion misplaced from operations by Uber in 2018.
Slack is searching for to go public through a direct itemizing as an alternative of an IPO, which has been the normal path to the general public markets for firms like Google mum or dad Alphabet, Fb Inc and Uber.
In contrast to a standard IPO through which firms promote shares to boost proceeds, a direct itemizing is solely a manner for current shareholders to promote inventory. Music streaming app Spotify Expertise SA final yr went public through a direct itemizing.
The June itemizing date might nonetheless be topic to alter, Jesse Hulsing, Slack vp of investor relations, instructed an investor occasion, which was webcast.
In an up to date regulatory submitting on Monday, Slack mentioned first-quarter income grew by round 65% year-on-year to round $134 million. Losses from operations additionally widened by nearly 50% to roughly $39 million.
Slack mentioned it plans to report detailed first-quarter outcomes on June 10.
It plans to commerce on the New York Inventory Alternate beneath the image “SK”.
The corporate has employed Goldman Sachs, Morgan Stanley, and Allen & Firm to be monetary advisors on the direct itemizing, which requires a fraction of the variety of banks as an IPO.
Reporting by Joshua Franklin in New York; Enhancing by Nick Zieminski