Nation & World

Slack listing likely up to $17 billion

Shares to be listed next week

Bloomberg

Slack is planning to have its shares start trading June 20 on the New York Stock Exchange under the ticker WORK.
Bloomberg Slack is planning to have its shares start trading June 20 on the New York Stock Exchange under the ticker WORK.

Slack Technologies is expected to be valued by investors at $16 billion to $17 billion when it lists its shares publicly next week, according to people familiar with the matter.

That valuation is roughly based on the workplace chat and collaboration software company’s projected revenue and current growth rate, said the people, who asked not to be identified discussing private talks.

The expected value is up from the $7.1 billion in its last private funding round in August.

It’s similar to the company’s share sales on the private market, where in April investors were snapping up stock at prices that would give the company a valuation of about $16 billion.

A spokeswoman for Slack declined to comment.

Slack is planning to have its shares start trading June 20 on the New York Stock Exchange under the ticker WORK.

Investors’ valuation expectations are based on some back-of-the-envelope math: Slack said Monday that it expects at least $590 million in revenue in its 2020 fiscal year, which ends January. That’s a growth rate of as much as 50 percent compared with the previous year.

That suggests the company could bring in almost $900 million in fiscal year 2021, and investors are seeking to value the company at roughly 20 times that projected revenue, the people said.

Slack is also rolling out partnerships with other software companies. Dropbox, the document-management software developer that went public last year, announced on Tuesday that it had integrated Slack into its workplace product.

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