Topic: How To Invest

What is Pat’s commentary for the week of July 23, 2019

Article Excerpt

We took a look at Slack Technologies in an Advice for Inner Circle Members email earlier this year. That was just before the company went public through a direct listing on the New York exchange. In opting for that process, it avoided the traditional and usually costly initial public offering, or IPO (see more on that below). Direct Public Offerings (DPOs) aim to minimize broker involvement and cost. You might also say they make the new-issue process fairer for investors. In addition, Slack’s successful DPO could help influence how private companies in the future sell shares to the public. A direct listing not only lets them avoid paying, say, $100 million or more in fees to investment banks, it also lets them avoid diluting the interests of existing shareholders by putting new shares on the market. Here’s a special report on Slack now that it has sold shares to the public. We will also continue to track its progress in our Spinoffs,…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.