Today there is good news for traders and investors with another tech IPO making its debut on the New York Stock exchange.
Slack, a collaboration platform whose workplace tool is in 600,000 organizations with paying customers of 95,000.
Under the ticker WORK, Slack has set a stock reference price at $26 a share, giving them a value of around $15.6 million.
The shares will be listed by direct offering, bypassing the IPO process of hiring a team of investment banks as underwriters and the fees of 6 to 7% that are involved in the underwriting process.
Want to know more about Slack?
Slack has taken business communication to a whole other level.
Since their launch in 2013, it has helped work colleagues share documents, hold private conversations in real-time without having to wait for emails.
Their app keeps colleagues and home workers constantly connected no matter what time zone you are in.
According to a news report in the Financial Times, Slack has lofty ambitions saying that they want to be the ‘great connector’.
Here’s the exciting news:
It’s now available on eToro’s platform!
Traders can immediately start trading Slack Technologies under the ticker “WORK”.
Did you know?
That in the first days of trading, newly listed companies stocks surge?
If you are an institutional investor, the Slack IPO is good news for you.
CrowdStrike, a cloud-security company, made their IPO on June 12. They are trading 123% above the $34 a share offering price.
That’s not all…
Also making their debut on the NYSE was Chewy, an online retailer of pet food and other pet-related products.
And you know what?
In the last round of private funding in August 2018, Slack was valued at $7.1 billion.
They saw a growth in revenue of 67% year over year in their most recent quarter of $135 million with a net loss growing from $25 million to $32 million.
According to PitchBook a private-capital data firm, the valuation of Slack will be similar to two enterprise cloud companies that made their IPOs in April 2019, Zoom which is trading 173% above its offering price and PagerDuty who is trading 130% higher.
Here’s another interesting thing:
So far this year, there have been 66 companies from all industries who have priced IPO’s on U.S. exchanges, with a decline of 20% from the same time a year ago – according to Renaissance Capital.
The aftermarket performance overall has been strong with the stock index up more than double of 36%, the rise in the S&P 500 index.
The interesting thing is that…
Tech companies making IPO’s are raising higher rounds with investor confidence that they can continue to grow and become profitable.
That’s not all…
Zoom, a video conferencing service, in April listed on the NASDAQ and their share price soared over 60%.
This is opposed to Uber and Lyft, ride-hailing IPOs who both lost money as they try to draw in consumers.
According to managing partner at Micracle Mile Advisors, Duncan Rolph, when they finally made their IPOs, it was an anti-climax after years of talking about it.
Rolph continued saying that companies that have a narrow focus like Chewy and Slack have a fresh storyline.
The truth is…
Right now, the market is hungry for good stories which looks good for Slack.
Rolph reportedly said that Slack has been able to close the gap in terms of losses and is very popular with their focus on replacing email and are growing quickly.
By now you will have realized where we are going with this!
This is where a trusted and reliable broker like eToro comes in.
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