Slack, the business chat and direct message provider company, has announced that it is going to become public in the coming year, and has hired investment bank Goldman Sachs as the lead underwriter for its highly anticipated IPO.
In September this year, there were already reports making rounds about the company preparing for its debut in the stock market in the early quarter of 2019, with an expected valuation of the company well in excess of the $7.1 billion.
The company had reported a total of 8 million daily active users in August this year, that is double the number of users it had in the summer last year. In the same month, the company had a funding round of $427 million, led by Dragoneer Investment Group and General Atlantic. The company’s major investors include SoftBank Group’s Vision Fund, Dragoneer Investment Group, General Atlantic, T. Rowe Price Associates, Wellington Management, Baillie Gifford, and Sands Capital, etc.
Slack, which is based in San Francisco and Vancouver, is one of the Silicon Valley companies valued over $1 billion, which is now hoping to fetch a valuation of over $10 billion in its IPO. Slack is one of the business messaging service provider, that is in a competitive race with Microsoft’s Teams, Alphabet’s Google Hangouts Chat and Cisco’s Webex Teams and its users are increasing by a rapid rate.
Last month, Slack’s co-founder and CEO, Stewart Butterfield told Fortune, “The company had no specific timeline for an IPO. We’ve been on a path to public company readiness for several years now, and we’re continuing on that path.”
2018, had a total of 188 companies went public on the U.S. exchanges, more than the number of companies last year, including 40 tech companies like Dropbox, Zuora, Uber, Lyft, and DocuSign. Other companies that are also planning for their IPO include Airbnb, Lyft, Uber, Palantir and Stripe, etc. Among which, Lyft already filed paperwork with the Securities and Exchange Commission, on Thursday, for its planned IPO ahead of other companies.
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