Slack shares are set to start trading Thursday on the New York Stock Exchange. But don't call it an IPO. The messaging tool, popular with big businesses, is not going public through a traditional route.
The messaging tool, popular with big businesses, is not going public through a traditional route. Slack didn't have investment bankers to pitch its shares to institutional investors. There was no splashy roadshow.Instead, Slack investors will sell shares directly on the New York Stock Exchange under the ticker symbol WORK. The direct listing will allow Slack to avoid a pricey and time-consuming process. But there are risks.
Slack not profitable and sales growth is slowingQuestions about the company's lack of profits could be a problem as well, just as it has been for fellow unicorns Uber and Lyft .Slack reported a net loss of $138.9 million in its last fiscal year. That follows losses of $140.1 million and $146.9 million in the preceding two years. It also posted a loss of $31.9 million in the first quarter of 2019, up from a loss of $24.9 million a year earlier.
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