Slack snowballs at public debut, values at $23 billion

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Slack snowballs at public debut, values at $23 billion

On Thursday, the 20th of June 2019, shares of a decade-old American software company, Slack technologies Inc., headquartered in San Francisco, focused on delivering online workplaces, messaging and communication platform for fast-growing businesses, had surged just a notch shy of 50 percent following its public market debut, which eventually proffered a market valuation of $23 billion for the company.

In fact, the upsurge of Slack stocks had highlighted the demand for fastest-growing online-based workspaces. None the less, on Thursday’s market closure, the stock of Slack had wrapped up the day at $38.62, while its reference price was $26 per share.

Slack’s direct listing on the public market had been different from traditional IPOs and public listing, as it did not intend to raise raw funds, instead the process facilitates the pathways of going public, which was pioneered last year by the music streaming giant, Spotify Technology SA.

Adding that the software provider for online workspaces had not yet been profitable and it would likely to struggle to explain such kind of overwhelming valuation that seemed entirely overexaggerated and might have been subject to bypassing a traditional IPO, a principal and manager of IPO ETFs at the Renaissance Capital, Kathleen Smith said, “They are going to have to do an awful lot to get the company’s fundamentals to justify that kind of valuation”.