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The cloud software company Snowflake Tuesday afternoon priced an offering of 28 million shares at $120 a share, according to a person familiar with the situation, above the recently increased target range of $100 to $110 a share. Snowflake stock was first indicated at $160 a share just after 10 a.m., but that has climbed to $180-$181 by 11 a.m. It has yet to trade.
It’s a clear demonstration of continued strong investor interest in both cloud-based software stocks and companies with very high top-line growth rates. The original price talk range on the offer was $75 to $85 a share.
With 277.3 million shares outstanding, the deal values Snowflake at $33.3 billion at the offering price.
Snowflake, based in San Mateo, Calif., has been generating stunning growth, with revenue of $242 million for the six months through July 31, up 133% from the comparable year-earlier period, following 174% growth in the January 2020 fiscal year.
Snowflake raised $1.4 billion in venture capital from a group that includes Sutter Hill Ventures, Sequoia Capital, Redpoint Ventures, Iconiq Strategic Partners, and Altimeter Partners. CEO Frank Slootman, a former CEO at both
and Data Domain, holds 15.2 million shares, a 5.9% stake worth about $1.8 billion. The company was valued at $12.4 billion in a private round earlier this year.
A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron’s and MarketWatch writers.
Concurrent to the offering, both Salesforce Ventures, an arm of
(ticker: CRM), and
(BRKA) have agreed to buy $250 million of the company’s stock in a private placement at the IPO price. Berkshire also agreed to buy another 4,042,043 shares from a current stockholder in a secondary transaction, also at the offering price. That puts Berkshire’s total stake at $735 million.
Snowflake will start trading on the New York Stock Exchange on Wednesday under the symbol SNOW.
lead the underwriting group.
The cloud software company Snowflake Tuesday afternoon priced an offering of 28 million shares at $120 a share, according to a person familiar with the situation, above the recently increased target range of $100 to $110 a share.
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