The workplace-messaging platform’s stock opened at US$38.50, which is 48 per cent higher than its reference price of US$26. Slack is the second major tech firm after Spotify to go public through a direct listing rather than an initial public offering. This method means the company doesn’t raise any money prior to going public—letting the market determine the price, instead—and investors are not entered into a lockup period. Its stock is up 48.54 per cent as of market close Thursday. (Wall Street Journal)

Talking point: The positive news shows investors’ continued belief in tech stocks, despite a slew of disappointing IPOs this year from some of the industry’s largest players, like Uber and Lyft. Direct listings benefit smaller companies because they don’t require them to spend money on hiring underwriters, or dilute their existing shares by issuing new ones. But they’re riskier than IPOs, as share sales are not guaranteed, and firms don’t get any defence against potential volatility. Slack didn’t want to dilute its shares, and it didn’t need any more new capital, its CEO Stewart Butterfield said. If all continues to go well for Slack, it could set a precedent for other firms looking to go public in the future. A potential issue that Slack shares with other tech companies that have recently gone public is that it’s still not profitable—and its sales growth is already slowing.