Snowflake Prices IPO Above Indicated Range To Raise $3.4B

Snowflake Inc. SNOW has raised about $3.4 billion in its initial public offering, according to several reports Tuesday.

What Happened: The cloud-based software startup has sold 28 million shares priced at $120 each, the Financial Times reported.The IPO values Snowflake at about $33.3 billion.

The reported IPO offer price is significantly above the $100 to $110 range Snowflake indicated in a filing with the United States Securities and Exchange Commission on Monday.

In an earlier filing with the SEC, the San Mateo, California-based company had indicated an even lower price range of $75 to $85.

Why It Matters: Snowflake's offering is the largest such in the United States since Uber Technologies Inc.'s UBER $8.1 billion IPO in May last year, according to Refintiv data reported by FT.

Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) and cloud-based software company Salesforce.com Inc. CRM agreed to invest $250 million each in Snowflake at the IPO price earlier.

The startup last reported a 121% year-on-year revenue growth in the second quarter at $133 million, with a revenue of $264.7 million in fiscal 2020.

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

Photo courtesy: Alexey Klijatov via Wikimedia