Employees and shareholders at Slack could be seen in celebratory mood on Thursday as the company debuted its stocks on the New York Stock Exchange (NYSE) 48% higher at a price of $38.50 per share. Interestingly, Slack that sells one of the most popular communication software to offices worldwide announced on Wednesday night that it had agreed to a reference price of $26 per share.
After the notable debut, the company’s shares closed at $38.62 per share, up 48.5% from earlier. Moreover, its stock rose to a peak value of nearly $42 in intraday trading at the shares market.
Slack, which started operations 10 years ago with the name Tiny Speck, has today fortified its position with a whopping market value of over $20 billion. This has increased almost three-fold its private valuation recently estimated to be $7 billion.
Following the development on Thursday, Slack became the second-largest capital-backed business entity to complete a direct listing in the stock market. With this, the company’s co-founder and CEO Stewart Butterfield, now features in the list of billionaires. At the opening price of the company’s stock, he held an 8.6% stake worth $1.6 billion.
Meanwhile, the news brought immense joy to Slack’s stakeholders too. The company’s largest shareholder Accel held a stake worth almost $4.6 billion.
The other important shareholders in the company are Social Capital, stakeholder worth $2 billion, Andreessen Horowitz, which owns shares worth $2.6 billion, SoftBank that owns worth $1.4 billion stakes in the company, and Cal Handerson, who is also the co-founder of Slack and owns nearly $646 million in the firm.
Slack holds earlier records of raising a total investment worth $1.2 billion from investor funds, such as the ones from Accel, Andreessen Horowitz, Social Capital, SoftBank, Google Ventures, and Kleiner Perkins. Slack’s stocks were reported to be closed at over $400 million in new funding late last year. This placed the company’s valuation to a remarkable $7.1 billion.