Snowflake Inc is a provider of cloud-based data storage and analysis software. This San Mateo-based company priced its initial price offering (IPO) above its increased range in an offering that values the company from California at $33.3 billion.
It is worth noting that, the company decided to sell 28 million shares at $120 a piece. Interestingly, Snowflake is poised to debut on the New York Stock Exchange on September 16. As a result, Snowflake is the first of several technology companies to go public this week. Notably, the company will raise approximately $3.4 billion from the offering.
The company generated more than $500 million in annualized revenue and grew over 130% in the first half of 2020. Snowflake already raised its anticipated debut price range from a maximum of $85 to a maximum of $110 in space less than a week.
Interestingly, the San Mateo-based company is growing alongside the major public cloud vendors by providing technology. Thanks to this technology, clients have the ability to quickly analyze and share vast amounts of data. Also, they can increase capacity according to the needs. Thus, they do not have to rely on databases that are tied to hardware.
Snowflake and famous companies
Two famous companies Berkshire Hathaway and Salesforce decide to invest in Snowflake. Each of them agreed to buy $250 million of stock at the IPO price in a concurrent private placement.
Moreover, Berkshire Hathaway agreed to buy 4.04 million shares in a secondary transaction from former CEO Bob Muglia. According to the IPO price, Berkshire Hathaway will pay $484.8 million for those shares.
The market needs companies such as a snowflake, as such companies demonstrated their ability to expand despite the challenges caused by the coronavirus pandemic. The BVP Nasdaq Emerging Cloud Index consists of more than 50 publicly traded companies. The index grew by about 55% in 2020. The San Mateo-based company has the potential to reach even better results.