Cloud-based software firm Slack Technologies makes its debut on the New York Stock Exchange Thursday with a reference price of US$26, adding to this year's parade of new Wall Street entrants.[SAN FRANCISCO] Cloud-based software firm Slack Technologies makes its debut on the New York Stock Exchange Thursday with a reference price of US$26, adding to this year's parade of new Wall Street entrants.
A reference price is not the initial price, as in an IPO, but rather an indication given by the bourse before initial buy and sell orders that will actually determine the value. This approach cuts down on fees to investment bankers in IPOs. Although existing shares can be sold, a direct listing does not issue new shares, averting share dilution but also forgoing the new funds raised in an IPO.