Slack Technologies Inc. is planning to go public to go public in the coming months through a rare direct listing, according to a report in The Wall Street Journal. Citing people familiar with the matter, the workplace instant-messaging app is likely to debut in the second quarter, which would make it the second large technology company after Spotify Technology SA SPOT, +1.01% went public through a direct listing in April 2018. In a direct listing, a company doesn’t raise any money as existing shareholders sell shares directly to the public, but it does avoid paying underwriting fees and lockups that prevent insiders from selling stock. In December, Recode reported that Slack and Airbnb were weighing direct listings. Slack’s plan to go public comes at a time both the Renaissance IPO ETF IPO, +0.45% and the S&P 500 SPX, +0.45% have lost 4.8% over the past three months.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.