Slack Technologies Inc ((NYSE:SK), the workplace messaging tool that has become the platform of choice for industries like tech and media, is pursuing a direct listing over a formal IPO, the Wall Street Journal reported.
Rather than selling new shares in the company to Wall Street insiders in advance of the opening day of trading, Slack — as Spotify Technology (NYSE:SPOT) did a year ago — will publicly offer existing shares to anyone who wants to buy them on opening day.
Slack will trade on the New York Stock Exchange (NYSE) under the ticker symbol “SK.”
“In choosing this path, which cuts out middlemen by offering only existing shares directly onto a stock exchange, Slack will save a small fortune in investment-banking fees that its peers have shelled out,” reported the newspaper.
However, it is considered a risky move because selling stock to those insiders is meant to keep the price stable, as does the lockup that keeps shareholders from immediately selling their shares for a number of months.
In its first filing made public, Slack revealed about $841 million in cash on hand, which would last more than 8 and a half years at its current burn rate. The company logged revenue of $400.6 million in the fiscal year ending January 31, 2019.
However, its path to profitability is still uncertain as Slack actually lost more money in fiscal 2019 than in the year before. Lost $140.7 million in its latest fiscal year, versus $140.1 million in the prior year.
Chewy
Chewy, an online retailer that hawks branded and private-label pet food and grooming supplies, filed Monday to raise up to an estimated $800 million in an initial public offering.
The Dania Beach, Florida-based company was founded in 2011 and is majority owned by retailer PetSmart Inc. It booked $3.53 billion in sales in its latest fiscal year. The company has yet to reach profitability. Its net loss narrowed to $267.9 million in the year ended February 3 from $338.1 million in the year-earlier period. Sales rose 68%.
It plans to list under the symbol “CHWY,” but the filing didn’t say which exchange the company plans to list on. Allen & Company, JP Morgan and Morgan Stanley are the joint bookrunners on the deal. No pricing terms were disclosed.
Beyond Meat
Beyond Meat (NASDAQ: BYND), which makes plant-based meat products for groceries and restaurants, will issue 8.8 million shares between $19 and $21 on Wednesday night to raise approximately $183.8 million.
At the midpoint of the proposed range, El Segundo, California-based company would command a fully diluted market value of $1.2 billion. The company reported revenue of $87.9 million and a net loss of $29.9 million in 2018.
Beyond plans to list on the Nasdaq with the ticker “BYND.”
Red River
Red River Bancshares (NASDAQ:RRBI), a Louisiana commercial bank expects to raise $26 million by offering 600,000 shares at a price range of $42 to $46 on Thursday night. At the midpoint of the proposed range, the Alexandria, Louisiana-based company would command a market value of $319 million.
Red River Bancshares was founded in 1998 and booked $74 million in revenue for the 12 months ended December 31, 2018. It plans to list on the Nasdaq under the symbol “RRBI.”
So-Young International
So-Young International Inc, (NASDAQ:SY) will issue 13 million shares between $11.80 and $13.80 Thursday to bring in about $206.31 million. Launched in 2013, the Beijing-based online platform serves as a marketplace for plastic surgery services in China. Deutsche Bank and CICC are the lead bankers on the deal.
Trevi Therapeutics Inc
Trevi Therapeutics Inc (NASDAQ:TRVI) will issue nearly 4.7 million shares between $14 and $16 Thursday to bring in approximately $85.87 million.
Founded in 2011 and headquartered in New Haven, Connecticut, the clinical-stage biopharmaceutical company, focuses on the development and commercialization of nalbuphine ER to treat serious neurologically mediated conditions.
Transmedics Group Inc
Transmedics Group Inc (NASDAQ:TMDX) will issue 4.7 million shares between $15 and $17 Thursday to bring in about $91.89 million. The Andover, Massachusetts, medical technology company sells proprietary technology to store and transport organs for transplant.
SciPlay Corp
Sciplay Corp (NASDAQ:SCPL), a social gaming company offering casino-style mobile games, is planning to raise $404.8 million by offering 22 million shares at a price range of $14 to $16 on Friday. At the midpoint of the proposed range, SciPlay would command a market value of $1.9 billion.
Founded in 1997, The Las Vegas, Nevada company is a subsidiary of Scientific Games Corp and the creator of games like "Monopoly Slots."
It booked $416 million in sales for the 12 months ended December 31, 2018. It plans to list on the Nasdaq under the symbol “SCPL.”
BofA Merrill Lynch, JP Morgan, Deutsche Bank, Goldman Sachs, Morgan Stanley, Macquarie Capital and RBC Capital Markets are the joint bookrunners.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive