Snowflake Prices IPO Above Marketed Range at $120 a Share

  • Snowflake Prices IPO Above Marketed Range at $120 a Share

Snowflake Prices IPO Above Marketed Range at $120 a Share

Snowflake's IPO eclipses that of Royalty Pharma, which so far was the biggest IPO of 2020, and underscores the recent rebound in the USA market for new stocks after the Covid-19 pandemic prompted several companies to put IPO plans on hold.

Data storage software company Snowflake has raised its estimated initial public offering price. That's about 30% higher than the $75-$85 the company originally listed on its amended Form S-1, filed with the U.S. Securities and Exchange Commission last Monday.

At that price, Snowflake would be valued in the listing at more than US$33 billion based on the outstanding shares listed in its prospectus, including the 28 million that were planned for Tuesday's share sale.

It's a busy week for IPOs as technology and other companies rush to get in the door ahead of the Nov 3 United States presidential election. At the midpoint of the new estimated price range, Berkshire Hathaway's total stake in Snowflake after the IPO would be valued at $674.4 million.

Snowflake's revenue jumped 173.9% to US$264.7 million for the full year ended Jan 31, though its net loss almost doubled to US$348.54 million. In the sixth months that ended July 31, sales were $242 million, a 133% year-over-year increase.

What's Next: Snowflake shares are set to debut on the New York Stock Exchange under the symbol "SNOW" on Wednesday.

Goldman Sachs, Morgan Stanley, J.P. Morgan, Allen & Co and Citigroup are the lead underwriters for the offering.