NYSE: Slack direct listing to usher in new era for equities

Author: John Crabb | Published: 20 Jun 2019

When corporate messaging service Slack goes public today via direct listing it will mark the next stage in what is likely to be a new era for the US equities market. By choosing a direct listing over a more traditional initial public offering (IPO), the San Francisco-based company is only the second large corporate to do so, following Swedish music streaming service Spotify in April 2018.

According to John Tuttle, vice chairman and chief commercial officer at the New York Stock Exchange (NYSE), where Slack has chosen to list, the overall success of Spotify's direct listing last year has opened the floodgates to companies with similar profiles to list on its exchange using this technique.

"A direct listing isn't for every company. It really depends on the profile of the company and what they are hoping to achieve by coming to the market," he told IFLR. "There have been companies...