“Slack chooses New York Stock Exchange for IPO.

Slack, a manufacturer of business communication and collaboration tools, is said to have chosen the New York Stock Exchange for its IPO. That’s what The Wall Street Journal reports on the basis of insiders. This would be the second time that a large company has chosen the stock exchange to make its direct listing available.

Slack is expected to go for a direct listing, which is more risky than a traditional IPO. With a traditional IPO, a company hires a bank to manage the sale and attract investors. The shares can be bought at a fixed price before the company goes public.

A direct listing skips that part. In that case, a company chooses to sell its shares directly on the stock exchange, without a starting price. It’s a pretty unconventional way to get an IPO. Spotify did this last year, however, and also via the New York Stock Exchange.

Slack is not expected to go public until June or July. At the moment the company is still in talks with the Securities and Exchange Commission (SEC) about details about how it will all work. Slack submitted his documents to the SEC in February for the IPO.

Slack

Slack is best known for its group communication app. Earlier this year, the company said it had more than 10 million active users daily and 85,000 paid users. The company has been in existence since 2013 and has raised more than a billion dollars in funding since then.

The company’s choice to go to the New York Stock Exchange is a great victory for the stock exchange, which competes with the Nasdaq for the largest stock exchange listings in the United States. The New York Stock Exchange has already won over Uber and Pinterest.