Slack picks NYSE for direct listing, likely coming this summer


Slack Technologies Inc. has selected the New York Stock Exchange for the direct listing of its shares, the second time a major company has picked the exchange to host its unorthodox initial public offering.

The workplace-messaging company is set to follow Spotify Technology SA SPOT, +1.78%   in debuting on the NYSE through a direct listing, according to people familiar with the matter, after the music streamer’s debut last year went off without a major hitch.

Slack is still in communication with the Securities and Exchange Commission over details on how the listing will work and isn’t expected to go public until June or July.

In a direct listing, a company places its stock on a public exchange without raising any money or using underwriters. The company doesn’t choose the price or who gets to buy in the night before trading begins — as is the case in a traditional IPO. Direct listings are rare, as companies typically seek to raise money when they go public. But now that two major issuers have opted for them, more cash-rich Silicon Valley startups are likely to at least consider following suit.

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