Snowflake, a cloud-based data-warehousing startup headquartered in California, has recently hiked the price of its initial public offering (IPO), valuing at $33.3 billion. Snowflake revealed that it will be selling 28 million of its shares at $120 per share. Reportedly, Snowflake is the first of many technology companies that are planning to go public this week and is estimated to raise around $3.4 billion from its IPO.
According to reliable sources, investors are ecstatic about the offering and are already bidding upon the company’s stock, which is anticipated to make a blockbuster opening on its first day. Snowflake had recorded over 130% growth in the first half of 2020 along with annual revenue of more than $500 million.
For the record, Snowflake had previously raised its expected debut price range from a cap of $85 to $110. The company is growing alongside prominent public cloud vendors by offering technology that enables users to quickly share and analyze massive amounts of data as well as raise capacity as needed. This frees customers from shackling on databases that are wired to hardware.
Snowflake revealed in its filing that both Salesforce and Berkshire Hathaway have agreed to buy $250 million of stock each in a concurrent private placement at the IPO price. In addition to this, Berkshire Hathaway is planning to purchase 4.04 million shares from former CEO Bob Muglia in a secondary transaction.
Earlier in August, Snowflake had publicly filed Form S-1 with the U.S. Securities and Exchange Commission for the public offering of its Class A common stock which would go under the ticker symbol “SNOW”. Companies like Morgan Stanley, Goldman Sachs & Co. LLC, Allen & Company LLC, Citigroup and J.P. Morgan will be acting as the lead book-running managers for this initial public offering.