The makers of the San Francisco-based workplace task management platform Asana plan to go public and has filed an S-1 form with the Securities and Exchange Commission, the company said in a Monday statement.
Asana's Direct Listing Plans
Asana will opt for a direct listing instead of taking the initial public offering route. Direct listing was also the methodology adopted by Spotify Technology SA (NYSE: SPOT), which is known for music streaming and the work-oriented instant messaging company Slack.
Asana was co-founded by Justin Rosenstein and Facebook, Inc. (NASDAQ: FB) co-founder Dustin Moskovitz. The app helps in assigning tasks, tracking progress and setting deadlines for projects. The app can also be used to free workers from repetitive tasks and assist in schedule management.
The Benefits For Asana
Asana has exceeded $100 million in annual recurring revenue and has been valued at $1.5 billion, according to Business Insider. It's opting for a direct listing, which is an increasingly popular route in Silicon Valley.
The benefit of a direct listing is that a company can go public and forego having to issue new stock by having existing shareholders sell shares on an exchange.
This method also bypasses the costs incurred with an IPO, when companies have to shell out money for publicity and heavy underwriting fees for bankers.
Data from Crunchbase indicates that Asana has raised $213.2 million. In its Series E funding round, the company raised $50 million.
Photo courtesy of Asana.