Slack's Direct Listing Valuation Is Said to Be Near $17 Billion

The transcript discusses Slack's upcoming IPO via a direct listing, a less proven model compared to traditional IPOs. It explains the direct listing process, highlighting its volatility and the role of banks and investors in setting the share price. The discussion covers Slack's valuation, comparing it to previous funding rounds and market conditions. The benefits and challenges of direct listing are explored, including cost savings and the democratization of pricing, but also the reduced role of banks and potential risks to the IPO model.

What is a key characteristic of a direct listing compared to a traditional IPO?

• Raising money beforehand

• Setting a price the night before

• Involvement of more banks

• Increased volatility

How does a direct listing determine the initial share price?

• Based on previous funding rounds

• By the banks involved

• By investor demand on the listing day

• Through a pre-set price by the company

What is one potential benefit of a direct listing for a company like Slack?

• Higher banking fees

• More control over share pricing

• Democratization of the market

• Faster listing process

Which banks are mentioned as sharing most of the fees in a direct listing?

• Citadel Securities and Stock Exchange

• Goldman, Morgan Stanley, and Allen

• Deutsche Bank and Credit Suisse

• Bank of America and JPMorgan

What concern did people have about direct listings affecting the IPO model?

• It would increase the number of banks involved

• It would lead to higher fees

• It might undermine the traditional IPO model

• It would decrease market volatility