Software Maker Asana Picks NYSE for Direct Listing

(Bloomberg) -- Corporate software maker Asana Inc. has picked the New York Stock Exchange as the home for its direct listing in late September, people familiar with the matter said.

The NYSE, a subsidiary of InterContinentalExchange Inc., has been the venue for the two high-profile direct listings so far, Spotify Technology S.A. and Slack Technologies Inc.

Nasdaq, which has hosted smaller direct listings in the past, also pitched for the business, the people said, asking not to be identified because the matter is private.

Representatives for Asana, NYSE, Nasdaq declined to comment.

Facebook Co-founder

Started by Facebook Inc. Co-founder Dustin Moskovitz, Asana could make its financials public by the end of August and hold an investor day in September ahead of the listing, the people said, asking not to be identified because the matter is private.

Asana has recently been trading on the secondary market at a value of around $5 billion, one of the people said. The secondary market valuation is an important element of a company’s price discovery process in a direct listing, since no new shares are sold.

Asana’s plans aren’t final and the timing could still change, the people said. The Information earlier reported some of these details. Asana said in February that it had confidentially filed with the U.S. Securities and Exchange Commission.

IPO alternative

In a direct listing, no fresh capital is raised by existing investors who can begin selling their shares on the first day of trading without a lock-up period. It can save on banking fees and the time spent on an investor roadshow compared to a regular initial public offering.

Some venture capitalists say they prefer them as an alternative to IPOs.

While it’s still a rarer route to the public markets, Asana won’t be alone this fall. Palantir Technologies Inc is also planning a direct listing in late September, Bloomberg News previously reported.

Airbnb Inc. has considered one before the pandemic but is now pursuing a traditional IPO, Bloomberg News reported this month.

Asana makes workplace productivity software. It was valued by private investors at $1.5 billion in 2018 and has raised $214 million to date, according to PitchBook data.

In June, Moskowitz, who has a net worth of $15.3 billion, according to the Bloomberg Billionaire Index, was the main lender to Asana in a $200 million debt deal, Bloomberg News reported.

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