Slack Moves Ahead Amid Direct Listing Plans

Slack filed with regulators to go public in the U.S. without disclosing details of its share-sale plans, according to Bloomberg.

The messaging platform company, previously reported to be pursuing a direct listing of its stock, said in a statement that it had submitted a confidential filing with the Securities and Exchange Commission. Slack is working with Goldman Sachs, Morgan Stanley and Allen & Co. on the share sale, according to a person familiar with the matter who asked not to be identified.

Slack plans to forgo a traditional initial public offering and instead intends to sell its shares to bidders in a direct listing, a person familiar with the matter said last month. While that would preclude the company from raising money by issuing new shares for sale, it would avoid some typical underwriting fees and allow current investors to sell shares without a lock-up period.

The company is choosing the unusual method for going public because it doesn’t need the cash or publicity of an IPO, the person said at the time. The share sale, which might take place toward mid-year, could value Slack at more than $7 billion, according to the person, who added that the company’s plans could still change. The company was valued at $7.1 billion in a $427 million funding round in August.