Slack is set to list its shares publicly next week and is expected to be valued between $16–$17bn by investors, according to a report by Bloomberg.
The projected valuation is based on the company's expected revenue and current growth rate. The workplace messaging firm said on Monday that it expected a revenue of between $590m–$600m. Last week, it shared very positive financial results for 1Q19, revealing a better-than-expected growth of 67% and a revenue of $134.8m during the first quarter of the year.
Slack plans to go public on June 20, taking the approach that Spotify has by going public with a direct listing on the New York Stock Exchange rather than trying to raise money through an IPO. A direct stock listing means the company would be able to list without having to sell shares, guarantees stock liquidity and ensures that there is equal access to any interested buyers – not just bankers. It would also allow Slack to be more transparent in the way it runs its business.
In addition to going public this year, the firm is investing in a number of partnerships with other software firms. On Tuesday, Dropbox announced that it had integrated Slack into its product.