Last month, workplace communications software Slack, became the second largest venture capital-backed business to complete a direct listing to the New York Stock Exchange. A move which made co-founder and CEO, Stewart Butterfield a billionaire, having held on to an 8.6 per cent stake in the business worth over $1.6 billion at its opening price.
At the end of its first day of trading, Slack’s share price closed up 48.5 per cent at $38.62 per share. During intraday trading Slack’s share price rose as high as $42 per share, after reports earlier that week that the business had agreed to a reference price of $26 per share.
Slack’s market cap now sits well above $20 billion, equalling nearly three times its more recent private valuation of just $7 billion.
Along with Butterfield’s newly acquired billionaire status, Accel – Slack’s largest shareholder – boasted a stake worth a whopping $4.6 billion. At the time, Social Capital also owned a stake worth $2 billion, Andreessen Horowitz ($2.6 billion), SoftBank ($1.4 billion), and Slack co-founder Cal Henderson ($646 million).
Slack posted revenues for the fiscal first quarter ending April 30 of $134.8 million on losses of $31.8 million, representing a 67 per cent increase from the same period last year when the company lost $24.8 million on $80.9 million in revenue.
Please note, all figures are correct as of the day of the IPO and may have altered since.