Slack is planning direct listing. After Spotify and Slack, do you think this could be the new norm in the tech industry? This would definitely make tons of ppl here REAL millionaires. I personally think only very profitable companies can afford the risk of direct listing. But it seems easier than IPO since there is less restriction/ regulation. What’s your thought?
2nd company you’ve heard of and suddenly it’s a “new norm”? lol
But you can’t raise money with direct listing, which renders this option unusable for Airbnb.
You’re asking a bunch of engineers what they think about the latest trend in IPOs. I would bet most people here haven’t the slightest idea of the factors that went into Spotify and slacks decision
How would a direct IPO impact stock prices in IPO? From my reading a direct IPO doesn't create a new pool of stock. So- does that mean it's only the ISOs/RSUs and whatever notes the VCs hold? And the existing company held non-issued stock? Let's say for example a company unit of stock is valued at $100 via 409a. What happens in a direct IPO and what could one estimate for increase in value @ IPO?
When a company doesn’t need money then it makes sense. https://www.theinformation.com/articles/slacks-financials-ahead-of-listing-plans
If they don't need money, why do it? For their employees? What do you think about the pre-IPO stock trade companies?
There are pros and cons, and liquidity, for all shareholders and the company itself, is a large pro.