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Slack reference price set at $26 per share: NYSE

Key Points
  • The NYSE has set a reference price of $26 per share for Slack's Thursday debut on the market.
  • That does not mean the stock will start trading at that price.
  • Slack is pursuing a direct listing, which means it will let existing shareholders sell shares, but is not selling new shares or raising additional funds. 
A trader works on the floor during the Slack Technologies Inc. IPO at the New York Stock Exchange (NYSE) in New York, U.S. June 20, 2019.
Brendan McDermid | Reuters

Slack Technologies' reference price was set at $26 per share, the New York Stock Exchange announced Wednesday evening.

That does not necessarily mean Slack's Class A shares will open at $26 when they make their stock market debut on Thursday.

A reference price is not an offering price. It is also not an opening price. That number will ultimately be determined by the designated market maker, based off a calculation of a figure where buy orders can be met with sell orders.

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Like music streaming service Spotify, Slack decided to pursue a direct listing, rather than a traditional initial public offering. This allows existing investors to sell into the public markets, but the company won't be offering shares or raising fresh capital.

Slack, the maker of a popular team messaging service for businesses, will trade under the ticker symbol "WORK."

For the year ending Jan. 31, the company reported a net loss of $138.9 million on $400.6 million in revenue, according to documents it filed in April.