The Securities and Exchange Commission is investigating the listings of Slack Technologies Inc. and other major companies on the New York Stock Exchange, in a probe looking at how trading was handled on the first day, people familiar with the situation said.
SEC enforcement staff have recently sent letters including one seeking information from electronic-trading firm Citadel Securities LLC related to how it opened Slack’s stock WORK, +1.32% for trading on June 20 in the workplace-messaging app’s so-called direct listing, the people said. It also seeks information on other IPOs.
Regulators asked Citadel Securities and at least one other firm for messages such as emails sent just before the stocks opened for trading, as well as their policies for complying with NYSE rules, some of the people said.
The agency is probing initial public offerings over the past several years of other so-called unicorns, companies known for achieving high valuations while private, the people said.